Year $12$

Revenues $129\mathrm{.}3159\mathrm{.}6$

Operating Expenses $($other than depreciation$)37\mathrm{.}954\mathrm{.}3$

Depreciation $29\mathrm{.}933\mathrm{.}9$

Increase in Net Working Capital $3\mathrm{.}78\mathrm{.}8$

Capital Expenditures $26\mathrm{.}544\mathrm{.}3$

Marginal Corporate Tax Rate $(\%)2525$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$)$: $.$

a$.$ 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.$)$

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 $2?($Note: Assume any incremental cost of goods

sold is included as part of operating expenses.$)$

Calculate the incremental earnings of this project below: $($Round to one decimal place.$)$