You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing. You

[answerhappygod]

You Are A Manager At Northern Fibre Which Is Considering Expanding Its Operations In Synthetic Fibre Manufacturing You 1 (29.02 KiB) Viewed 22 times

You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing. Your boss comes into your office, drops a consultant's report on your desk, and complains, "We owe these consultants $1.2 million for this report, and I am not sure their analysis makes sense. Before we spend the $29 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): 1 2 9 10 Sales revenue 33.000 33.000 33.000 33.000 Cost of goods sold 19.800 19.800 19.800 19.800 = Gross profit 13.200 13.200 13.200 13.200 - General, sales, and administrative expenses 2.320 2.320 2.320 2.320 - Depreciation 2.900 2.900 2.900 2.900 = Net operating income 7.980 7.980 7.980 7.980 - Income tax 2.793 2.793 2.793 2.793 = Net income 5.187 5.187 5.187 5.187 . a 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? The free cash flow for year O is $ million. (Round to three decimal places, and enter a decrease as a negative number.) 0 a