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You are a manager at Northem Fiber, which is considering expanding its operations in synthetio fiber manufacturing. Your boss comes into your cetcce, drops a

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You are a manager at Northem Fiber, which is considering expanding its operations in synthetio fiber manufacturing. Your boss comes into your cetcce, drops a consuitanfs report on your deex, it ower and give me your opinion. "You open the report and find the following estimates (in millons of dollara) (Click on the ican located on the top-right comar of the data table beilow in crder to copy is contents inte a spreadsheet). All of the estimates in the report seem cotrect. You note that the consultants used straightline depreciation for the now equipment that will be purchosed todey crear of which is utat the actounting department recommanded for financial roporting purposes. Carada Rewerve Agency allows a CCA rase of 20 ch on the equipment for tax purposes. The report conctudes that beciuse the profed will increase eamings by $5.070 milion per year for ten years, the project is worth $50.7 millon. You think beck to your bakyon days in finance class and realize there is more work to be donel have attributed $2.4 milion of selting. general and administrative expenses to the project, but you know that 51.2 millon of this amount is cmatiead that will be hourred even it the project is not accepted. Finaly. you know that accounting earnings are not the right thing to focus onl a. Given the available information, What are the free cast flows in years 0 through 10 that should be used to nvaliate the proposed propect? a. Glven the ayailable information, what are the free cash flows in years 0 through to that should be used to evaluate the proposed project? The tree cash flow for year 0=5 milion. (Round to the newrest malon)

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