You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing Your bous comes into your office, drops a consultants report on your desk, and complains, "We owe these consultants $1,5 million for this report, and I am not sure their analysis makes sense. Before we sporld 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 milions of dollars): 1 2 9 10 Sales revenue 32.000 32.000 32.000 32.000 -Cost of goods sold 19 200 19.200 19.200 19.200 Gross profit 12.800 12.800 12.800 12.800 - 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 9.5600 9.5600 9,5600 9,5600 -Income tax 3.346 3346 3.346 3.346 b. If the cost of capital for this project is 16%, what is your estimate of the value of the new project? Value of project = 5 million (Round to three decimal places.)