You are a manager at Percolated Fiber, which is considering expanding its cperations in synthete fber manufacturing. Your boss comes into your office, trops a consulanis's report on your desk, and complains. We owe these consultants $1.9 milion for this report, and 1 am not sure their analysis makes sense. Hefore we spend the $30 milion on new equipment needed for this perject, lookit over and give me your opinion. "You cpen the report and find the following estimates (in millions of dollars); (Cick on the following icon Q in order to copy its contents info a spreadshent) a. Given the avaloble information, what are the tree cash flows in years 0 through 10 that should be used to evaluate the proposed project? The free cash fow for year D is $ milion. (Round to three decimal places and enter a decrease as a negative number.) You are a manager at Percolated Fiber, which is considering expanding its operations in synthebe foer mansfacturing Your boss comes into your office, drops a consutanfs report on your desk, and complains. We owe these consultants $1.9 milion for this report, and I am not suee their analysis makes sense. Before we spend the $30 milion on new equipmert needed for this project, bok it over and give me your opinion "You coen the ceport and frd the following estimates (in millons of dollars) (Click on the following icon O. in order to copy its conlents into a spreadsheet. ) A of the estmates in the repert seem corect. You note that the consitants used straight-ine decreciation for the new ecuprent that will be purchased today (year ok which is what the acoounting department recomenended. The report conckudes that because the project will increase earrings by $4640 milion per year for ten years, the project is worth $464 malion. You thiek back to your halcyon days in feance class and realize there it more work to be donel Fent, you note that the conwitants have not factored in the fact that the project wit requre $10 milion in working captal uplront (year ok which wil be fully recovered in year 10 . Next you see they have atirbsted 52.4 milion of seling. general and administrative expenses to the peoject, bu you know hal $1.2 milion of this amount is overtead that wal be incurred even if the project is not accepeed. Finaly. you know that scceurtting earnings are not the nght thing to focus onl a. Given the ayalsble information, ahat are the free cash flows in years 0 through 10 that should be used to evaluakegre proposed project? b. If the cost of capital for this preject is 16%. what is your estimate of the value of the new project? a. Given the avalable informason, what are the tree cash fows in yoars 0 through 10 that should be used to evaluate the proposed project? The free cash fow for year 0 is 4 milion. (Round to three decimal places and enser a decrease as a negative eumber)