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 eamings 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 eamings 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 eamings of this project below: (Round to one decimal place.) Incremental Earnings Forecast (millions) Year 1 Year 21 Sales 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 Capital Expenditures Marginal Corporate Tax Rate Print Done Year 1 Year 2 126.9 153.5 34.8 66.2 25.3 36.1 2.7 7.7 26.5 40.2 21% 21%