You are a manager at Northem Fibre, which is considering expanding is operations in therefore manufacturing Your boss come into your office, crops acon's report on your desk and complains, "Wie we these consultants $1.6 million for this report, and I am not sure that analysis makes sense Before we spend the $22 million on new equipment needed for this project, look it over and give me your opinion. You open the report and find the fotlewing estimates Un milions of dollars 1 2 10 Sales revenge 27.000 27.000 27.000 27.000 -Cost of goods sold 18.209 16.200 16 200 18 200 Gospot 10.800 10.800 10.800 10.800 General, sales, and administrative experim 1.760 1.760 1700 1.700 -Depreciation 2.200 2200 2200 2.200 Net operating income 66400 65400 MOO 6 1400 - Income Tax 2.14 2.394 2394 2.314 Net income 4.446 4446 b. If the cost of capital for this projets 12, what is your estimate of the value of the new project as of project million Round to the decimal places) O You are a manager at Northern Fre, which is considering expanding is operations in synthetic fibre manufacturing Your boss comes into your office, drops a consultant's report on your desk, and complain, Wewe these consultants $1.6 million for this report, and I am not sure their analysis makes sense Before we spend the $22 milion on new equipment needed for this project, look over and give me your opinion. You open the report and find the following estimates in millions of dollars 1 2 10 Sales revenue 27.000 27.000 27.000 27.000 -Cost of goods sold 16.200 10 200 16.200 16200 Gross profit 10.800 10.800 10.800 10.800 General, sales and administrativa expenses 1.760 1.760 1,760 1.760 -Depreciation 2.200 2.200 2.200 2.200 -Net operating income 6 5400 6.8400 63400 6.8400 -Income 2394 2.394 2.394 2394 Net Income 4.446 4446 4 446 b. If the cost of capital for this project is 12%, what is your estimate the value of the new project? Value of project million (Round to three decimal places)