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 $25 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 30.000 30.000 30.000 30.000 - Cost of goods sold 18.000 18.000 18.000 18.000 = Gross profit 12.000 12.000 12.000 12.000 General, sales, and administrative expenses 2.000 2.000 2.000 - Depreciation 2.500 2.500 2.500 2.500 = Net operating income 7.5000 7.5000 7.5000 7.5000 Income tax 2.625 2.625 2.625 2.625 b. If the cost of capital for this project is 10%, what is your estimate of the value of the new project? 2.000 Value of projects million (Round to three decimal places.)