(7). Alpha 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): Year 1 Year 2 Revenues 125 160 Cost of goods sold and operation expenses other than depreciation 40 60 Capital cost allowance 25 36 Increase in working capital 5 8 Capital expenditures 30 40 Marginal corporate tax rate 35% 35% (a) What are the incremental earnings for this project for year 1 and year 2? (3 points) (b) What are the free cash flows for this project for the first two years? (2 points)