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 $1.3 million for this report, and I am not sure their analysis makes sense. Before we spend the $21.3 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 34.000 34.000 34.000 34.000 - Cost of Goods Sold 20.400 20.400 20.400 20.400 = Gross Profit 13.600 13.600 13.600 13.600 - General, Sales and Administrative Expenses 1.704 1.704 1.704 1.704 - Depreciation 2.130 2.130 2.130 2.130 = Net Operating Income 9.766 9.766 9.766 9.766