(Click on the following icon o in order to copy its contents into a spreadsheet.) Revenues Operating Expenses (other than depreciation) Depreciation Increase in Net Working Capital Capital Expenditures Marginal Corporate Tax Rate Year 1 127.8 42.1 27.1 2.3 26.6 21% Year 2 165.9 55.8 29.4 8.5 40.4 21% 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): 2 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? .... 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 $ 46.3 $ 63.7 Depreciation $ 27.1 $ Capital Expenditure $ 26.6 $ 40.4 Change in NWC $ 2.3 $ 8.5 Free Cash Flow $ $ 29.4