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):

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.)

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

Calculate the incremental earnings of this project below: (Round to one decimal place.) Calculate the incremental earnings of this project below: (Round to one decimal place.)