You are a manager at Northern 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 owe these consultants $1.7 million for this report, and I am not sure their analysis makes sense. Before we spend the $20 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): 1 Sales revenue Cost of goods sold = Gross profit - General, sales, and administrative expenses - Depreciation = Net operating income - Income tax 27.000 16.200 10.800 1.600 2.000 7.200 2.52 2 27.000 16.200 10.800 1.600 2.000 7.200 2.52 9 27.000 16.200 10.800 1.600 2.000 7.200 2.52 10 27.000 16.200 10.800 1.600 2.000 7.200 2.52 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? 0 The free cash flow for year O is $ million. (Round to three decimal places, and enter a decrease as a negative number.) You are a manager at Northern 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 owe these consultants $1.7 million for this report, and I am not sure their analysis makes sense. Before we spend the $20 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): 1 Sales revenue Cost of goods sold = Gross profit - General, sales, and administrative expenses - Depreciation = Net operating income - Income tax 27.000 16.200 10.800 1.600 2.000 7.200 2.52 2 27.000 16.200 10.800 1.600 2.000 7.200 2.52 9 27.000 16.200 10.800 1.600 2.000 7.200 2.52 10 27.000 16.200 10.800 1.600 2.000 7.200 2.52 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? 0 The free cash flow for year O is $ million. (Round to three decimal places, and enter a decrease as a negative number.)