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Imdale 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
Imdale 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 or the first two years (in millions of dollars): What are the incremental earnings for this project for years 1 and 2? (Note: Assume any incrementai cost of goods soid is included as part of operating expenses.) 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? (Note: Assume any incrementai cost of goods soid is inchuded as part of operating expenses.) What are the free cash flows for this project for years 1 and 2
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