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): 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 project for years 1 and 2? (Note: Assume any incremental cost of goods sold is included as part of operating expenses.) - X Calculate the incremental earnings of this project below: (Round to one decimal place.) Incremental Earnings Forecast (millions) Year 1 Year 2 Sales 125 $ 160 Data table Operating Expenses $ $ (Click on the following icon in order to copy its contents into a spreadsheet.) Depreciation $ $ EBIT $ Income tax at 21% $ $ $ Year 1 125.0 40.0 25.0 2.0 30.0 21 % Unlevered Net Income Year 2 160.0 60.0 36.0 8.0 40.0 21 % Revenues Operating Expenses (other than depreciation) Depreciation Increase in Net Working Capital Capital Expenditures Marginal Corporate Tax Rate $ Print Done