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$)$:

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.$)$

b$.$ What are the free cash flows for this project for years $1$ and $2?$

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.$)$

$\backslash$table$[[$Incremental Earnings Forecast $($millions$),$Year $1,$Year $2],[$Sales$,$$$,128900000$$$,$$$,150400000],[$Operating Expenses,,$42500000,,68300000],[$Depreciation$,,86400000,,82100000],[$EBIT$,$$$,,$$$,],[$Income Tax at $21\%,,,,],[$Unlevered Net Income,$$,,$$$,]]$

Data table

$($Click on the following icon in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[1,$Year,$1,2$