Question Help You are a manager at Northern Fibre, which is considering expanding its operations...
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Question Help 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 $1.3 million for this roport, 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 milions of dolars): Project Year Eanings Forecast ($000,000s) Sales revenue 28.000 28.000 16.800 16.800 11.200 11.200 2.320 2.320 2.900 2.900 10 28.000 28.000 6.80016.800 11.200 11.200 2.320 2.320 2.900 2.900 5.9800 5.9800 Cost of goods sold Gross profit - General, sales, and administrative expenses - Depreciation Net operating income a. Given the available information, what are the free cash fows in years o through 10 that should be used to evaluate the proposed project? The free cash fow for year 0 is s -44 milin.(Round to three decimal places and enter a decrease as a negative number



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You can see the logs in the Dashboard.