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tobicoke 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
tobicoke 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 ears (in millions of dollars). 1. 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.) What are the free cash flows for this project for the first two years? a. Calculate the incremental earnings for Year 1 of this project below. /alues to two decimal places as needed.) Calculate the incremental earnings for Year 2 of this project below. b. Calculate the free cash flows for Year 1 of this project below. Ialues to two decimal places as needed.) Calculate the free cash flows for Year 2 of this project below
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