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 2 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 28.000 16.800 11.200 1.920 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 2.400 2.400 6.8800 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.)