Problem 9-17b 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 $1.2 million for this report, and I am not sure their analysis makes sense. Before we spend the $24 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 9 Sales revenue - Cost of goods sold = Gross profit - General, sales, and administrative expenses - Depreciation = Net operating income 28.000 16.800 11.200 1.920 2.400 6.8800 2 28.000 16.800 11.200 1.920 2.400 6.8800 28.000 16.800 11.200 1.920 2.400 6.8800 10 28.000 16.800 11.200 1.920 2.400 6.8800 b. If the cost of capital for this project is 14%, what is your estimate of the value of the new project? Value of project = $ million (Round to three decimal places.)