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$$ complains, $"$We owe these consultants $ $1\mathrm{.}6$$$1\mathrm{.}6$ million for this$$ report, and I am not sure their analysis makes sense. Before we spend the $ $19$$$19$ 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$)$:

$1$

$2$

$...$

$9$

$10$

Sales revenue

$28\mathrm{.}00028\mathrm{.}000$

$28\mathrm{.}00028\mathrm{.}000$

$28\mathrm{.}00028\mathrm{.}000$

$28\mathrm{.}00028\mathrm{.}000$

minus$$Cost of goods sold

$16\mathrm{.}80016\mathrm{.}800$

$16\mathrm{.}80016\mathrm{.}800$

$16\mathrm{.}80016\mathrm{.}800$

$16\mathrm{.}80016\mathrm{.}800$

equals$=$Gross profit

$11\mathrm{.}20011\mathrm{.}200$

$11\mathrm{.}20011\mathrm{.}200$

$11\mathrm{.}20011\mathrm{.}200$

$11\mathrm{.}20011\mathrm{.}200$

minus$$General$,$sales$,$ and administrative expenses

$1\mathrm{.}5201\mathrm{.}520$

$1\mathrm{.}5201\mathrm{.}520$

$1\mathrm{.}5201\mathrm{.}520$

$1\mathrm{.}5201\mathrm{.}520$

minus$$Depreciation

$1\mathrm{.}9001\mathrm{.}900$

$1\mathrm{.}9001\mathrm{.}900$

$1\mathrm{.}9001\mathrm{.}900$

$1\mathrm{.}9001\mathrm{.}900$

equals$=$Net operating income

$7\mathrm{.}7807\mathrm{.}780$

$7\mathrm{.}7807\mathrm{.}780$

$7\mathrm{.}7807\mathrm{.}780$

$7\mathrm{.}7807\mathrm{.}780$

minus$$Income tax

$2\mathrm{.}7232\mathrm{.}723$

$2\mathrm{.}7232\mathrm{.}723$

$2\mathrm{.}7232\mathrm{.}723$

$2\mathrm{.}7232\mathrm{.}723$

equals$=$Net income

$5\mathrm{.}0575\mathrm{.}057$

$5\mathrm{.}0575\mathrm{.}057$

$5\mathrm{.}0575\mathrm{.}057$

$5\mathrm{.}0575\mathrm{.}057$