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 $28 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 1 2 27.000 27.000 16.200 16.200 9 27.000 16.200 27.000 - Cost of goods sold 16.200 = Gross profit 10.800 10.800 - General, sales, and administrative expenses 10.800 10.800 2.240 2.800 2.800 2.240 2.240 2.240 - Depreciation 2.800 2.800 = Net operating income 5.7600 5.7600 5.7600 5.7600 2.016 2.016 - Income tax 2.016 2.016 = Net income 3.744 3.744 3.744 3.744 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.)