You are a manager at Percolated fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes indo your offce, drops a consultanfs ropart on your desk and complains. We owe these conaultants $1.2 milion for this report, and I am not sure their analysis makes sense. Before we spend the $22.3 militon on now oquipment needed for this project, look it over and give me your opinion" You open the report and find the following entimates (in millons of dollars) IZB. Ar of the esimates in the report seem correct You note that the consutants used srrighthine deprociation for the new equipment that will be purchasod today (year O), which is what the accounting, department rocornmended. They also calculated the depreciation assuming no saboge value for the equipenent. The report condudes that because the project will increatie eamings by $7.257 mition per year for 10 years, the project is worth $72.57 milion. You think back to your glary days in Enance class and realize there in more work to be donel First, you note that the consultants have not included the fact that the project will require $10. e millea in worling captal up front bear of. which will be fidy rocovered in year 10 . Next, you see hey have asributed $1.784 million of selling. general, and administrative expenses to the peoject, but you know that $0.892 milion of tiss amount is overtiead that will be incurred even if the projoct is not accepted. Finally, you know that accounting eamings are not the right thing to focus onl a. Given the avaloble information, what are the tree cash fows in years 0 through 10 that should be used to evaluatn the proposed project? b. It the cost of capial for this projoct is 8%, what in your estimate of the value of the new peject? Data table cosed project? (Click on the following icon Bi in order to copy its contents inta a spreadsheet.)