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 27 (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 GO a. What are the incrementat earnings for this project for years 1 and 2? (Note Assumo any incremental cont of goods sold in meded as part of operating expenses Calculate the incremental earnings of this project below (Round to one decimal place) Incremental Earnings Forecast (millions) Year 1 Year 2 Sales $ 5 Operating Expenses S Depreciation EBIT Income tax at 21% $ S Haus Alar ata table - Xcted the Year 2 1679 55.7 (Click on the following icon in order to copy its contents into a spreadsheet.) Year 1 Revenues 129.2 Operating Expenses (other than depreciation) 414 Depreciation 288 Increase in Net Working Capital 21 Capital Expenditures 302 21% Marginal Corporate Tax Rate 25.7 71 359 21% Print Done Check