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Year 1 Year 2 Revenues 123.3 166.9 Operating Expenses (other than depreciation) 44.6 67.2 Depreciation 28.9 43.4 Increase in Net Working Capital 2.9 8.8 Capital
Year 1 | Year 2 | |||
Revenues | 123.3 | 166.9 | ||
Operating Expenses (other than depreciation) | 44.6 | 67.2 | ||
Depreciation | 28.9 | 43.4 | ||
Increase in Net Working Capital | 2.9 | 8.8 | ||
Capital Expenditures | 26.4 | 43.4 | ||
Marginal Corporate Tax Rate | 21 | % | 21 | % |
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
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