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.) \begin{tabular}{lcc} \hline Revenues & Year 1 & Year 2 \\ Operating Expenses (other than depreciation) & 120.9 & 160.4 \\ Depreciation & 41.5 & 68.6 \\ Increase in Net Working Capital & 20.1 & 39.1 \\ Capital Expenditures & 3.3 & 8.8 \\ Marginal Corporate Tax Rate & 25.7 & 42.9 \\ \hline \end{tabular}