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 $1.9 million for this report, and I am not sure their analysis makes sense. Before we spend the $29 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): Sales revenue - Cost of goods sold = Gross profit General, sales, and administrative expenses - Depreciation = Net operating income - Income tax = Net income 1 32.000 19.200 12.800 2.320 2.900 7.5800 2.653 4.927 2 32.000 19.200 12.800 2.320 2.900 7.5800 2.653 4.927 9 32.000 19.200 12.800 2.320 2.900 7.5800 2.653 4.927 10 32.000 19.200 12.800 2.320 2.900 7.5800 2.653 4.927 .. b. If the cost of capital for this project is 13%, what is your estimate of the value of the new project