XYZ 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: Items Revenues Costs of Good soles and operating expenses Depreciation Increase in net working capital Capital expenditures Marginal corporate tax rate Unlevered Net Income Year 1 106.5 47.7 25.9 3.1 29.1 40% 19.7 Year 2 159.9 59.9 35.5 7.6 43.8 40% 38.9 a. What are the free cash flows for this project for the first years and the second year? b. If the initial investment of the project is 10 thousand dollars and the cost of capital for this project is 15%, what is your estimate of the enterprise value? c. If XYZ has a debt of 5 thousand dollars and its number of shares outstanding is 2 thousand shares, what is the price of its stock