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You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manutacturing. 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 1 am not sure their analysis makes sense. Before we spend the $26 million on new equipment needed for this project, look in over and give me your opinion:" You open the report and find the following estimates (in millions of dollars): Al of the estmates in the report seem correct. You note that the consultants used straight-line depeeciaton for the new equipment that will be purchased today (year 0), which is what the acoounting department recommended for financial reporting purposes. CRA allows a CCA rate of 30% on the equipment for tax purposes. The report concludes that because the project will increase earnings by 53.718 million per year for ten years, the project is worth 537.18 milion. You think back to your glory days in finance ciass and realize there is more work to be donel First you note that the consultants have not factored in the fact that the project will require $7 million in working capital up front (year 0 ), which will be fully recovered in year 10 . Next you see they have attributed $2.08 million of selling. general and administrative expenses to the project, but you know that $1.04 million of this amount is overhead that will be incurred even it the project is not accepted. Finaly, you know that acoounting eamings are not the right thing to focus ont b. If the cost of capital for this project is 16\%. what is your estimate of the value of the new project? b. If the cost of captal for this project is 16%. what is your estimate of the value of the new project? Value of project =$ million (Round to three decimal places.)