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Please Show the answers for the Incremental Earning for years 1 and 2 and also the Free Cash Flow for the first 2 years as

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Please Show the answers for the Incremental Earning for years 1 and 2 and also the Free Cash Flow for the first 2 years as well. Thank you

Elmdale 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 for the first two years (in millions of dollars): Revenues COGS and Operating expenses (other than depreciation) Depreciation Increase in working capital Capital expenditures Marginal corporate tax rate a. What are the incremental earnings for this project for years 1 and 2? b. What are the free cash flows for this project for the first two years? Year 1 115.3 38.3 23.3 4.6 32.3 44% Year 2 152.7 45.5 34.2 7.3 45.5 44%

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