You are a manager at Percolated Fiber, which is considering expanding its operations in synthetic fiber manufacturing

 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 $1.7 million for this report, and I am not sure their analysis makes sense. Before we spend the $25 million on new equipment needed for this project, look it over and give me your opinion." You open the report and find the following estimates in millions of dollars): (Click on the following icon in order to copy its contents into a spreadsheet.) Earnings Forecast ($ million) Project Year 2 9 10 28.000 Sales revenue - Cost of goods sold = Gross profit -Selling, general, and administrative expenses - Depreciation 1 28.000 16.800 11.200 2.000 2.500 28.000 16.800 11.200 2.000 2.500 16.800 11.200 2.000 2.500 28.000 16.800 11.200 2.000 2.500