You are a manager at Northem Fere, which is considering expanding its operations in synthetio fibre manulacturing Your boss comes into your office, drops a consultant's report on your desk. it over and give me your opinion." You open the report and find the foliowing eusmales (in millons of dollars) Al of the estimates in the report seem correct. You nete that the consultants used straight-line depreciason for the new equipment that will be purchased today (year o), which is what the accounting department recommended for financial reporting purposes. CRA allows a CCA rate of 45% on the equipment for tax purposes. The report concludes that because the project wa increase earnings by $5.460 milion per year for ten years, the project is worth $54.6 milion. You think back to your fory dings in finance class and realize there is more woek to be donel First you note that the consultants have not factored in the fact that the project wal require $11 milion in working capilal up tront (year of, which will be fully recovered in year 10 . Noxt you see they have atributed $1.6 milion of soling. general and administrative expenses to the project, but you know that 50.8 milton of this eneumt is overhead that will be incurred even if the project is not. acoepted. Finaly, you know that accounting earnings are not the right thirg to focus om b. If the cost of capital for this project is 8%, what is your estmate of the value of the new project? b. If the cost of captal for this project is 8%, what is your estmate of the value of the new propect? Value of project =1 milion (Round to three decimal places.)