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? C 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.) X Incremental Earnings Forecast (millions) Year 1 Year 2 Data table Sales $ $ Operating Expenses $ $ (Click on the following icon in order to copy its contents into a spreadsheet.) Depreciation $ $ Year 1 Year 2 EBIT $ $ Revenues 123.4 162.5 Income tax at 21% $ $ Operating Expenses (other than depreciation) 38.3 60.9 $ $ Unlevered Net Income Depreciation 27.9 25.6 Increase in Net Working Capital 2.5 7.2 Capital Expenditures 33.7 36.7 Marginal Corporate Tax Rate 21% 21%