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Endale Enterprises is deciding whether to expand its production facilities. Although long term cash flows are difficult to estimate, management has projected the folowing
Endale Enterprises is deciding whether to expand its production facilities. Although long term cash flows are difficult to estimate, management has projected the folowing cash flows for the first two years (in millions of dears) What are the incremental earnings for this project for years 1 and 27 (Note: Assume any incremental cost of goods sold to included as part of operating expenses) b. What are the free cash flows for this project for years 1 and 2? Data table a. What are the incremental eamings for this project for years 1 and 27 (Note: Assume any in Calculate the incremental eamings of this project below: (Round to one decimal place) (Click on the following icon in order to copy its contents into a spreadsheet) Sales Incremental Eamings Forecast (milions) Operating Expenses Year 1 Year 2 Year 1 Year 2 Revenues 120.8 1505 $ Depreciation $ $ EBIT $ income tax at 21% $ $ Unlevered Net Income Operating Expenses (other than depreciation) Depreciation increase in Net Working Capital Capital Expenditures Marginal Corporate Tax Rate 37.6 67.9 20.9 436 3.0 7.0 28.7 38.5 21% 21%
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