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	118.6	169.2
COGS and Operating expenses (other than depreciation)	43.4	41.8
Depreciation	21.8	37.6
Increase in working capital	4.1	7.1
Capital expenditures	28.1	42.6
Corporate tax rate	20%	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?