a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incr Calculate the incremental earnings of this project below: (Round to one decimal place.) Incremental Earnings Forecast (millions) Year 1 Year 2 Sales 32 - $ 1- Operating Expenses Depreciation $ FT EBIT $ 44.0 Income tax at 21% c Unlevered Net Income $ b. What are the free cash flows for this project for years 1 and 2? Calculate the free cash flows of this project below: (Round to one decimal place.) Free Cash Flow (millions) Year 1 Year 2 Unlevered Net Income $ Depreciation $ Capital Expenditure $ Change in NWC Free Cash Flow $ $ 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 a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incremental cost of goods sold is included as part of operating expenses.) b. What are the free cash flows for this project for years 1 and 2? a. What are the incremental earnings for this proiect for vears 1 and 22 (Note: Assume any incremental cost of aoods sold is included as part of operating expenses.) X i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 1 Year 2 Revenues 127.5 150.7 36.6 51.7 22.6 40.9 Operating Expenses (other than depreciation) Depreciation Increase in Net Working Capital Capital Expenditures Marginal Corporate Tax Rate 3.3 7.6 34.4 35.8 21 % 21 %