You are a manager at PercolatedFiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into youroffice, drops aconsultant's report on yourdesk, andcomplains, "We owe these consultants $1.8 million for thisreport, and I am not sure their analysis makes sense. Before we spend the $28 million on new equipment needed for thisproject, look it over and give me youropinion." You open the report and find the following estimates(in millions ofdollars): Project Year Earnings Forecast ($000,000s) 1 2 . . . 9 10 Sales revenue 32, 32,...32, 32, - Cost of goods sold 19.2, 19.2,...19.2, 19.2 Gross profit 12.8, 12.8,...12.8, 12.8, - Selling, general, and administrative expenses 2.24, 2.24,...2.24, 2.24 - Depreciation 2.8, 2.8 2.8 2.8 Net operating income 7.76, 7.76,...7.76 7.76 - Income tax 2.716, 2.716,...2.716, 2.716 Net unlevered income 5.044, 5.044... 5.044, 5.044