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You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a

You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, "We owe these consultants $1.8 million for this report, and I am not sure their analysis makes sense. Before we spend the $17 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): (Click on the following icon in order to copy its contents into a spreadsheet.)
\table[[,Project Year],[,1,2,dots,10],[Sales revenue,25.000,25.000,25.000,25.000],[- Cost of goods sold,15.000,15.000,15.000,15.000],[= Gross profit,10.000,10.000,10.000,10.000],[- General, sales, and administrative expenses,1.360,1.360,1.360,1.360],[- Depreciation,1.700,1.700,1.700,1.700],[= Net operating income,6.940,6.940,6.940,6.940]]
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?
The free cash flow for year 0 is $ million. (Round to three decimal places and enter a decrease as a negative number.)
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