Question
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
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 | Year 2 | |||
Revenues | 119.9 | 156.9 | ||
COGS and Operating expenses other than depreciation | 35.7 | 48.3 | ||
Depreciation | 23.1 | 36.2 | ||
Increase in net working capital | 5.5 | 8.2 | ||
Capital expenditures | 25.7 | 37.3 | ||
Marginal corporate tax rate | 30 | % | 30 | % |
The incremental earnings for year 1 is $______? million. (Round to one decimal place.)
The incremental earnings for year 2 is $_______? million. (Round to one decimal place.)
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.)
PLEASE ANSWER COMPLETE QUESTION. NO NEED TO SHOW WORK. THANK YOU!
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