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 $1.1 million for this report, and I am not sure their analysis makes sense. Before we spend the $19.5 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 Sales Revenue 26.000 26.000 26.000 26.000 - Cost of Goods Sold 15.600 15.600 15.600 15.600 = Gross Profit 10.400 10.400 10.400 10.400 - General, Sales and Administrative Expenses 1.560 1.560 1.560 1.560 - Depreciation 1.950 1.950 1.950 1.950 = Net Operating Income 6.890 6.890 6.890 6.890 - Income Tax 2.412 2.412 2.412 2.412 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? O The free cash flow for year 0 is $1 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 9%, what is your estimate of the value of the new project? If the cost of capital for this project is 9%, the value of the project is $ million. (Round to three decimal places.)