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 $1.1 million for this report, and I am not sure their analysis makes sense. Before we spend the $27 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): 10 Sales revenue 9 25.000 15.000 25.000 1 2 25.000 25.000 15.000 15.000 10.000 10.000 2.160 - Cost of goods sold 15.000 = Gross profit 10.000 10.000 - General, sales, and administrative expenses 2.160 2.160 2.160 - Depreciation 2.700 2.700 2.700 2.700 = Net operating income 5.1400 5.1400 5.1400 5.1400 - Income tax 1.799 1.799 1.799 1.799 = Net income 3.341 3.341 3.341 3.341 b. If the cost of capital for this project is 10%, what is your estimate of the value of the new project? Value of project = $ million (Round to three decimal places.)