You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibre manufacturing.
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Question:
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 $ 1.6 million for this report, and I am not sure their analysis makes sense. Before we spend the $ 20 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):
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