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	113.1	160.3
COGS and Operating expenses (other than depreciation)	44.9	49.3
Depreciation	25.6	33.7
Increase in working capital	3.4	7.9
Capital expenditures	34.3	37.9
Marginal corporate tax rate	43%	43%

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?