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6. Etobicoke Enterprises is deciding whether to expand its production facilitios. Although long-term cash flows are dificult to estimate. management has projected the following cash

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6. Etobicoke Enterprises is deciding whether to expand its production facilitios. Although long-term cash flows are dificult to estimate. management has projected the following cash flows for the first two years (in millons of dollars): a. What are the incremental earnings for this project for years 1 and 27 (Note: Assume any incrementai cost of goods sold is included as part of operating expenses.) b. What are the free cash flows for this project for the first two years? a. Calculate the incremental eamings for Year 1 of this project below: (Round to ane decimal place.) Calculate the incremental earnings for Year 2 of this project bolow: (Round to one decimal place.) b. Calculate the tree cash flows for Year 1 of this project below: (Round to one decimal place.) Caiculate the free cash flows for Year 2 of this project below. (Round to one decimal place.)

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