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 Operation expenses 40 60 ( other than depreciation ) Depreciation 25 36 Increase in working capital 5 8 Capital expenditures 30 40 Marginal corporate tax rate 35 % 35% What are the free cash flows for this project for the first two years