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	128.9	164.8
COGS and Operating expenses (other than depreciation)	37.2	40.4
Depreciation	23.5	37.5
Increase in working capital	5.7	7.8
Capital expenditures	30.1	45.6
Corporate tax rate	20%	20%

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?