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	114.7114.7	163.6163.6
COGS and Operating expenses (other than depreciation)	48.848.8	61.261.2
Depreciation	26.626.6	33.533.5
Increase in working capital	4.14.1	7.97.9
Capital expenditures	28.428.4	45.145.1
Marginal corporate tax rate	40 %40%	40 %40%

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 $____million. (Round to one decimal place.)