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): Revenues COGS and Operating expenses other than depreciation Depreciation Increase in net working capital Capital expenditures Marginal corporate tax rate Year 1 105.4 42.9 24.2 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? 5.3 29.2 35% Year 2 154.8 51.9 35.7 7.7 39.1 35%