P 9-14 (similar to) Elmdale: Enterprises is deciding whelher to expand ils production facilities. Allhough long-term cash flows are difficult to estimate, management has projected the following cash flows for the first two years (in trillions of dollars): 5 a. What are the incremental earnings for this project for years 1 and 2? (Note: Assunte 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 27 (Note: Assurre any incremental cost of goods sold is included as part of operating experises.) Calculate the incremental earnings of this project below: (Round to one decimal place.) Incremental Earnings Forecast (millions) Year 1 Year 2 i Data Table Sales S s Operating Expenses s! Depreciation S (Click on the following icon in order to copy its contents into a spreadsheet.) EBIT S S $ Year 1 S Income tax at 21% 124.1 S Revenues $ Operating Expenses (other than depreciation) 40.8 Unlevered Net Income S $ Depreciation 20.5 Increase in Net Working Capital 3.3 Capital Expenditures 30.6 Marginal Corporate Tax Rate 21% Year 2 1582 65.5 39.1 7.1 41.7 21% Print Done