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): Year 1 Revenues 125.0 COGS and Operating expenses (other than depreciation) 40.0 Depreciation 25.0 Increase in working capital 5.0 Capital expenditures 30.0 Corporate tax rate 20% 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? a. What are the incremental earnings for this project for years 1 and 2? The incremental earnings for year 1 is $ million. (Round to one decimal place.) Year 2 160.0 60.0 36.0 8.0 40.0 20% The incremental earnings for year 2 is $ million. (Round to one decimal place.) b. What are the free cash flows for this project for the first two years? The free cash flow for year 1 is $ million. (Round to one decimal place.) The free cash flow for year 2 is $million. (Round to one decimal place.)