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): Year 1 Year 2 Revenues COGS and Operating expenses (other than depreciation) Depreciation Increase in working capital Capital expenditures Corporate tax rate a. What are the incremental earnings for this project for years 1 and 2? b. What are the free cash flows for this project for the first two years? a. What are the incremental earnings for this project for years 1 and 2? The incremental earnings for year 1 is $ The incremental earnings for year 2 is $ b. What are the free cash flows for this The free cash flow for year 1 is $ The free cash flow for year 2 is $ 119.2 49.6 24.6 5.6 32.9 20% million. (Round to one decimal place.) million. (Round to one decimal place.) project for the first two years? million. (Round to one decimal place.) million. (Round to one decimal place.) 162.2 59.6 35.5 7.2 37.7 20%