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Elmdale Enterprises is deciding whether to expand its production facilities. Although long - term cash flows are difficult to estimate, management has projected the following
Elmdale Enterprises is deciding whether to expand its production facilities. Although longterm cash flows are difficult to estimate, management has projected the following cash flows for the first two years in millions of dollars: tableYearRevenuesOperating Expenses other than depreciationDepreciationIncrease in Net Working Capital,Capital Expenditures,Marginal Corporate Tax Rate a What are the incremental earnings for this project for years and 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 and
Elmdale Enterprises is deciding whether to expand its production facilities. Although longterm cash flows are difficult to estimate, management has projected the following cash flows for the first two years in millions of dollars:
tableYearRevenuesOperating Expenses other than depreciationDepreciationIncrease in Net Working Capital,Capital Expenditures,Marginal Corporate Tax Rate
a What are the incremental earnings for this project for years and
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 and
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