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13. Elmdale Enterprises is deciding whether to expand its production facilities Although long-term cash flows are difficult to estimate, management has projected the following cash

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13. Elmdale Enterprises is deciding whether to expand its production facilities Although long-term cash flows are difficult to estimate, management has projected the following cash flows for the first two years (in millions of dollars) (se MFinancelab for the data in Excel format) Year Revenues 125 40 25 160 80 36 Ooperating Expenses other han deprciation Depreciation Increase in Net Working Cpita Capital Expenditures Marginal Corporate Tax Rate 30 35% 40 35% a. What are the incremental earnings for this project for years 1 and 2? b. What are the free cash flows for this project for years 1 and 2

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