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Elmdale Enterprises is deciding whether to expand its production facilitiesAlthough longterm cash flows are difficult estimatemanagement has projected the following cash flows for the first

Elmdale Enterprises is deciding whether to expand its production facilitiesAlthough longterm cash flows are difficult estimatemanagement has projected the following cash flows for the first two years in of ) aWhat are the incremental eamings for this project for years 1 and (NoteAssume any incremental cost of goods sold is included as part of operating expenses) b. What are the free cash flows for this project for years 1 and 2 What are the incremental earnings for this project for years 1 and 2( NoteAssume any incremental cost of goods sold is included as part of operating expenses) Calculate the incremental earnings of this project below(Round to one decimal place) Incremental Earnings Forecast ) Year 1 Year 2 Sales Operating Expenses Depreciation EBIT Income tax at 21% Unlevered Net Income image text in transcribed
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Eimdale Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to ostimate, managoment has projected the following cash flows for the first two years (in millions of dollars) a. What are the incremental eamings for this project for years 1 and 2? (Note. Assume any incremental cost of goods sold is included as part of operating expenses) b. What are the free cash flows for this project for years 1 and 2 ? a. 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.) (Click on the following icon D, in order to copy its contents into a spreadsheet)

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