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? 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.) Calculate the incremental earings of this project below: (Round to one decimal place) Incremental Earnings Forecast (millions) Year 1 Year 2 Sales $ $ Operating Expenses $ $ Depreciation $ $ $ $ Income tax at 21% $ S Unlevered Net Income b. What are the free cash flows for this project for years 1 and 2? EBIT Enter any number in the edit fields and then continue to the next question. 59 By 15-year bond with a notional value of 5000 and cooperate of 12 C) a 30-year bond with a notional value of $5000 and a coupon rate of 3.5% semiannually No Results Found sv file 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): 2 a. What are the incremental earings 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? Income tax at 21% $ S Unlevered Net Income s $ lale enterp b. What are the free cash flows for this project for years 1 and 2? Calculate the free cash flows of this project below (Round to one decimal place) Free Cash Flow (millions) Year 1 Year 2 Unlevered Net Income $ $ Depreciation $ S Capital Expenditure $ $ Change in NWC $ Free Cash Flow $ sa 1 Enter any number in the edit fields and then continue to the next question paid qual 15W 15-ar but with anotil valore and couple of 12 puldane Cya-yar hond with a sinal value of 000 and a coupon Tale of 155 pid semiarmally NO Results Found & Tv 11 $ 4 8 5 2 (Click on the following icon in order to copy its contents into a spreadsheet.) Revenues Operating Expenses (other than depreciation) Depreciation Increase in Net Working Capital Capital Expenditures Marginal Corporate Tax Rate Year 1 124.1 34.3 26.8 3.4 28.1 21% Year 2 154.3 50.5 39.8 8.8 44.4 21% at