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 $1.6 million for this report, and I am not sure their analysis makes sense. Before we spend the $23 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 10 Sales revenue Cost of goods sold = Gross profit - General, sales, and administrative expenses - Depreciation Net operating income - Income tax = Net income 32.000 19.200 12.800 1.840 2.300 8.6600 3.031 5.629 32.000 19.200 12.800 1.840 2.300 9 32.000 19.200 12.800 1.840 2.300 8.6600 3.031 5.629 32.000 19.200 12.800 1.840 2.300 8.6600 3.031 5.629 = 8.6600 3.031 5.629 b. If the cost of capital for this project is 12%, what is your estimate of the value of the new project? Value of project = $ = million (Round to three decimal places.)