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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

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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 consultant's report on your desk, and complains, "We owe these consultants $1.7 million for this report, and I am not sure their analysis makes sense. Before we spend the S17 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 Icon located on the top-right coner of the data table below in order to copy its contents into a spreadsheet) Project Year Earnings Forecast (S million) Sales revenue - Cost of goods sold -Gross profit - Selling, general, and administrative expenses - Depreciation 10 35.000 35.000 21.000 21.000 14.000 14.000 1.360 1360 700 1.700 10.940 0.940 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? 35.000 35.000 21.000 21.000 14.000 1.360 1.700 10.940 14.000 1.360 1.700 10.940 Net operating income The free cash flow for year 0 is Smillion. (Round to three decimal places and enter a decrease as a negative number.)

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