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.) Calculate the incremental earnings of this project below: (Round to one decimal place.) Incremental Earnings Forecast (millions) Sales Year 1 Year 2 $ $ Operating Expenses Depreciation EBIT Income tax at 21% Unlevered Net Income Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Revenues Operating Expenses (other than depreciation) Depreciation Increase in Net Working Capital xample Get more help Capital Expenditures Marginal Corporate Tax Rate Year 1 Year 2 124.8 151.3 37.6 55.8 25.2 32.7 3.2 7.2 26.2 36.9 21% 21% -