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 $1.3 million for this report, and I am not sure their analysis makes sense. Before we spend the $18 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 33.000 33.000 33.000 33.000 - Cost of goods sold 19.800 19.800 19.800 19.800 Gross profit 13.200 13.200 13.200 13.200 - General, sales, and administrative expenses 1.440 1.440 1.440 1.440 -Depreciation 1.800 1.800 1.800 1.800 Net operating income 9.9600 9.9600 9.9600 9.9600 -Income tax 3.486 3.486 3.486 3.486 OTTO b. If the cost of capital for this project is 15%, what is your estimate of the value of the new project? Value of project = 5 milion (Round to three decimal places.)