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.$)$

$\backslash$table$[[$Incremental Earnings Forecast $($millions$),,$Year $1,$Year $2],[$Sales$,$$$,$$$,],[$Operating Expenses,$$,$$$,],[$Depreciation$,$$$,$$$,],[$EBIT$,$$$,$$$,],[$Income tax at $21\%,$$$,$$$,],[$Unlevered Net Income,$$,$$$,]]$

Data table

$($Click on the following icon $$ in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[,$Year $1,$Year $2],[$Revenues$,127\mathrm{.}1,156\mathrm{.}1],[$Operating Expenses $($other than depreciation$),34\mathrm{.}4,60\mathrm{.}2],[$Depreciation$,28\mathrm{.}8,29\mathrm{.}3]]$

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 ears $($in millions of dollars$)$:

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 years $1$ and $2?$

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.$)$

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

$\backslash$table$[[$Incremental Earnings Forecast $($millions$),,$Year $1,$Year $2],[$Sales$,$$$,||,],[$Operating Expenses,$$,$$$,],[$Depreciation$,$$$,$$$,],[,$$$,$$$||,],[$Income tax at $21\%,$$$,$$$,],[$Unlevered Net Income,$$,$$$,]]$

Data table

$($Click on the following icon in order to copy its contents into a spreadsheet.$)$

$\backslash$table$[[,$Year $1,$Year $2],[$Revenues$,127\mathrm{.}1,156\mathrm{.}1],[$Operating Expenses $($other than depreciation$),34\mathrm{.}4,60\mathrm{.}2],[$Depreciation$,28\mathrm{.}8,29\mathrm{.}3],[$Increase in Net Working Capital,$2\mathrm{.}8,8\mathrm{.}8],[$Capital Expenditures,$30\mathrm{.}8,39\mathrm{.}2],[$Marginal Corporate Tax Rate,$21\%,21\%$