You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing. Your boss comes into your office, drops a consultant's report on your desk and complains, "we owe these consultants $1.8 million for this report, and i am not sure their analysis makes sense. Before we end 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)

Earnings Forecast ($000,000s)	1	2	9	10
Sales revenues	30	30	30	30
-Cost of goods sold	18	18	18	18
Gross Profit	12.000	12	12	12
-Selling, general, and administrative expenses	1.92	1.92	1.92	1.92
-Depreciation	2.4	2.4	2.4	2.4
Net Operating Income	7.680	7.68	7.68	7.68
-Income tax	2.688	2.688	2.688	2.69
Net Income	4.992	4.992	4.992	4.99