Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term cash flow are difficult to estimate, management has projected the following cash flows for the first two years (in millions of dollars) Year 2 Revenues 1603 COGS and Operating expenses (other than dopreciation) Depreciation 306 Increase in working capital Year 1 104.6 40.4 28.6 39 50.7 8.1 a. What are the incremental oamings for this project for years 1 and 2? Revenues COGS and Operating expenses (other than depreciation) Depreciation Increase in working capital Capital expenditures Marginal corporate tax rate Year 1 104.6 40.4 28.6 3.9 33.8 40% Year 2 160.3 50.7 30.6 8.1 40.3 40% a. What are the incremental earnings for this project for years 1 and 2? 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.) The incremental earnings for year 2 is $ million. (Round to one decimal place.) b. What are the free cash flows for this project for the first two years? The free cash flow for year 1 is $ million (Round to one decimal place.) The incremental earnings for year 2 is $ million. (Round to one decimal place.) b. What are the free cash flows for this project for the first two years? The free cash flow for year 1 is $ million. (Round to one decimal place.) The free cash flow for year 2 is $ million. (Round to one decimal place.)