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 $1.2 million for this report, and I am not sure their analysis makes sense. Before we spend the $26.6 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): Project Year Earnings Forecast 1 2 9 10 Sales Revenue 32.000 32.000 32.000 32.000 - Cost of Goods Sold 19.200 19.200 19.200 19.200 = Gross Profit 12.800 12.800 12.800 12.800 - General, Sales and Administrative Expenses 2.128 2.128 2.128 2.128 - Depreciation 2.660 2.660 2.660 2.660 = Net Operating Income 8.012 8.012 8.012 8.012 Income Tax 2.804 2.804 2.804 2.804 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.) The free cash flow for years 1 to 9 is $ million. (Round to three decimal places.) The free cash flow for year 10 is $ million. (Round to three decimal places.) b. If the cost of capital for this project is 11%, what is your estimate of the value of the new project? If the cost of capital for this project is 11%, the value of the project is $ million. (Round to three decimal places.) You accept the project. (Choose from the drop-down menu.)