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): Revenues COGS and Operating expenses (other than depreciation) Depreciation Increase in working capital Capital expenditures Corporate tax rate 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? Year 1 129.6 43.2 24.3 3.6 32.4 20% Year 2 158.1 41.4 33.2 7.5 45.6 20%