Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term cash ows are difcult to estimate, management has projected the following cash ows for the rst two years (in millions of dollars): Year 1 Year 2 D Revenues 122.1 166.9 COGS and Operating Expenses (other than depreciation) 49.3 52.7 Depreciation 21.1 31.4 Increase in Net Working Capital 3.8 7.6 Capital Expenditures 31.9 39.1 Marginal Corporate Tax Rate 35% 35% a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incremental cost of goods sold is included as part of operating expenses.) Calculate the incremental earnings of this project below: (Round to one decimal place.) Incremental Earnings Forecast (millions) Year 1 Sales $ E