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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 a

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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 a consultant's report on your desk, and complains, "We owe these consultants $1.1 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 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 1.600 1.600 1.600 1.600 - Depreciation 2.000 2.000 2.000 2.000 = Net operating income 6.800 6.800 6.800 6.800 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 year 0 is $ million. (Round to three decimal places, and enter a decrease as a negative number.)

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