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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 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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