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):

	Year 1		Year 2
Revenues	101.9		165.4
COGS and Operating expenses other than depreciation	46.6		35.5
Depreciation	29.5		32.7
Increase in net working capital	5.7		8.4
Capital expenditures	29.1		39.4
Marginal corporate tax rate	20	%	20	%

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?