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Endale Enterprises in deciding whether to expand its production facilities, Although long-term cash flows are difficult to estimate, management has projected the following cash

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Endale Enterprises in 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): 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) b. What are the free cash flows for this project for years 1 and 27 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) Calculate the incremental earnings of this project below (Round to one decimal place) Incremental Earnings Forecast (millions) Sales Operating Expenses Depreciation EBIT Income tax at 21% Unlevered Net Income Year 1 Year 21 $ $ $ S $ 5 $

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