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You are a manager at Northem Fibre, which is considering expanding its operations in synthetic fibre manufacturing. Your boss comes into your office, drops a

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You are a manager at Northem Fibre, which is considering expanding its operations in synthetic fibre manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, We owo these consultants $1.9 million for this report, and I am not sure their analysis makes sense. Before we spend the $27 million on new equipment needed for this project, look it over and give me your opinion. "You open the report and find the following estimates (in millions of dollars): b. If the cost of capital for this project is 11%, what is your estimate of the value of the new project? Value of project = S million (Round to three decimal places.) You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fitre manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, We owe these consultants $1.3 million for this report, and I am not sure their analysis makes sense. Before we spend the $15 million on new equipment needed for this project, look it over and give me your opinion." You open the report and find the following estimates (in millions of dollars): a. Given the available information, what are the free cash flows in years 0 through 10 that should be used to evaluate the proposed project? The free cash flow for yoar 0 is s million. (Round to three decimal places, and enter a decrease as a negative number.)

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