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{.}1$ 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$)$:

All of the estimates in the report seem correct. You note that the consultants used$$ straight$-$line depreciation for the new equipment that will be purchased today$($year $0),$ which is what the accounting department recommended for financial reporting purposes. CRA allows a CCA rate of $45\%$ on the equipment for tax purposes. The report concludes that because the project will increase earnings by $ $3\mathrm{.}887$ million per year for $10$ years, the project is worth $$38\mathrm{.}87$ million. You think back to your glory days in finance class and realize there is more work to be$$ done!$$

First you note that the consultants have not factored in the fact that the project will require $$15$ million in working capital up front$($year $0),$ which will be fully recovered in year $10.$ Next you see they have attributed $$2\mathrm{.}32$ million of$$ selling, general and administrative expenses to the$$ project, but you know that $$1\mathrm{.}16$ million of this amount is overhead that will be incurred even if the project is not accepted.$$ Finally, you know that accounting earnings are not the right thing to focus$$ on$!$

a$.$ Given the available$$ information, what are the free cash flows in years $0$ through $10$ that should be used to evaluate the proposed$$ project?

Thank you so much for the help! :)