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 $19 milion 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 milions of dollars) 1 2 9 10 Sales revenue 35.000 35.000 35.000 35.000 - Cost of goods sold 21.000 21.000 21.000 21.000 - Gross profit 14.000 14.000 14.000 14.000 - General, sales, and administrative expenses 1.520 1.520 1.520 1.520 -Depreciation 1.900 1.900 1.900 1.900 = Net operating income 10.5800 10.5800 10.5800 10.5800 -Income tax 3.703 3.703 3.703 3.703 Net Income 6.877 6.877 6.877 b. If the cost of capital for this project is 10%. what is your estimate of the value of the new project? Value of project = $ million (Round to three decimal places.) 6.877