Elmdale Enterprises is deciding whether to expand ils 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): Revenues COGS and Operating Expenses (other than depreciation) Depreciation Increase in Net Working Capital Capital Expenditures Marginal Corporate Tax Rate Year 1 127.7 34.5 21.7 3.5 30.7 35% Year 2 152.4 68.9 38.2 7.6 40.9 35% a. What are the incremental camings 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 earings for this project for years 1 and 2? (Note: Assume any incremental cost of goods sold is included as part of operating expenses.) Calculate the incremental earnings of this project below: (Round to one decimal place.) Year 1 $ Incremental Earnings Forecast (millions) Sales Operating Expenses Depreciation EBIT $ Income tax al 35% Unlevered Net Income