You are a manager at Northern Fibre, which is considering expanding its operations in syntheticfibre manufacturing. Your boss comes into your office, drops a consultant's report on your desk,and complains, "We owe these consultants $1 million for this report, and I am not sure theiranalysis makes sense. Before we spend the $25 million on new equipment needed for thisproject, look it over and give me your opinion." You open the report and find the followingestimates (in thousands of dollars):All of the estimates in the report seem correct. You note that the consultants used straight-linedepreciation for the new equipment that will be purchased today (year 0), which is what theaccounting department recommended. CRA allows a CCA rate of 30% on the equipment for taxpurposes. The report concludes that because the project will increase earnings by $4.875million per year for 10 years, the project is worth $48.75 million. You think back to your glorydays in finance class and realize there is more work to be done!First, you note that the consultants have not factored in the fact that the project will require $10million in working capital up front (year 0), which will be fully recovered in year 10. Next, you seethey have attributed $2 million of selling, general, and administrative expenses to the project,but you know that $1 million of this amount is overhead that will be incurred even if the project isnot accepted. Finally, you know that accounting earnings are not the right thing to focus on!a. Given the available information, what are the free cash flows