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	125	160
		Operating expenses (other than depreciation)	40	60
		Depreciation	25	36
		Increase in net working capital	2	8
		Capital Expenditures	30	40
		Marginal Corporate tax rate:	21%	21%
	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?