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

You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing. Your boss comes into your office, drops aconsultant's report on your desk, and complains, "We owe these consultants $1.6 million for this report, and I am not sure their analysis makes sense. Before we spend the $21 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 ofdollars):

1

2

. . .

9

10

Sales revenue

26.000

26.000

26.000

26.000

Cost

of goods sold

15.600

15.600

15.600

15.600

=Gross

profit

10.400

10.400

10.400

10.400

General,

sales, and administrative expenses

1.680

1.680

1.680

1.680

Depreciation

2.100

2.100

2.100

2.100

=Net

operating income

6.620

6.620

6.620

6.620

Income

tax

2.317

2.317

2.317

2.317

=Net

income

4.303

4.303

4.303

4.303

The free cash flow for year 0 is _______. (Round to three decimal places)

The free cash flow for year 1 is _______. (Round to three decimal places)

The free cash flow for year 2 is _______. (Round to three decimal places)

The free cash flow for year 3 is _______. (Round to three decimal places)

The free cash flow for year 4 is _______. (Round to three decimal places)

The free cash flow for year 5 is _______. (Round to three decimal places)

The free cash flow for year 6 is _______. (Round to three decimal places)

The free cash flow for year 7 is _______. (Round to three decimal places)

The free cash flow for year 8 is _______. (Round to three decimal places)

The free cash flow for year 9 is _______. (Round to three decimal places)

The free cash flow for year 10 is _______. (Round to three decimal places)

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