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) 414 Year 1 Year 2 Revenues 123.7 1503 COGS and Operating Expenses (other than depreciation) 676 Depreciation 24.1 356 Increase in Net Working Capital 32 8.5 Capital Expenditures 29.3 438 Marginal Corporate Tax Rate 35% 35% 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 27 .. What are the incremental eamings 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 canings of this project below. (Round to one decimal place) Incremental Earnings Forecast (millions) Year 1 Sales $ Operating Expenses $ Depreciation $ EBIT $ Income tax at 35% Marginal Corporate Tax Rate 35% 35% a. What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incremental cos b. What are the free cash flows for this project for years 1 and 2? Calculate the incremental earnings of this project below: (Round to one decimal place.) Incremental Earnings Forecast (millions) Year 1 Sales Operating Expenses Depreciation $ $ $ EBIT $ Income tax at 35% $ $ Unlevered Net Income