You are a manager at Northern Fbre, which is considering expaniding its operations in synthefic fibre manulacturing Your boss comes into your office, drops a consulunts neport on your desk, it over and give me your opinion\" \"You open the report and find the following estimates (in milions of dollars) Al of the estimates in the report seem corroct. You note that the consultants used straight-line depreciation for the new equipment that will be purchased today (year 0), which is what the accounting department recommended for financial reporting purposes. CRA allows a CCA rate of \30 on the equipment for tax purposes. The report concludes that because the project will increase earnings by \\( \\$ 5 . \\$ 12 \\) milion per year for ten years, the project is worth \\( \\$ \\$ 5.12 \\) million. You think back to your glory days in finance class and tealize there is more work bo be done! Fint you note that the consultanls have not factored in the fact that the project wall require 514 melion in woning captal up front (year 0), which will be fully recovered in year 10 . Next you see they have attrouted \\( \\$ 1.92 \\) milion of seling. general and adminiatrative expenses to the peojoct. but you know that \\( \\$ 0.96 \\) milion of this amount is overtiead that wil be incurred even if the project is not accopted. Finaty. you know that accounting earnings are not the night thing to focus onl b. If the cost of capial for this project is \15, what is your estimate of the value of the new project? b. If the cost of caphai for this project is \15, what is your entimate of the value of the new propect? Value of project is mallion (Round to triee decimal places.)