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$$ complains, $"$We owe these consultants $ $1\mathrm{.}4$ million for this$$ report, and I am not sure their analysis makes sense. Before we spend the $ $16$ 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$$ dollars$)$:estimates $($in millions of dollars$)$: $($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$

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?

b$.$ If the cost of capital for this project is $16\%,$ what is your estimate of the value of the new project?