\begin{tabular}{lcc} \hline & Year 1 & Year 2 \\ \hline Revenues & 125.7 & 169.3 \\ Operating Expenses (other than depreciation) & 47.4 & 56.4 \\ Depreciation & 24.5 & 31.7 \\ Increase in Net Working Capital & 2.1 & 8.4 \\ Capital Expenditures & 29.3 & 42.7 \\ Marginal Corporate Tax Rate & 21% & 21% \end{tabular} Elmdale Enterprises is deciding whether to expand its production facilities. Although Iong-term cash flows are difficult to estimate, management has projected the following cash flows for the first two years (in millions of dollars): 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