Answer A and B

Homework: M3: Chapter 8 Homework Save Score: 0 of 1 pt 4 of 12 (0 complete) HW Score: 0%, 0 of 12 pts P8-9 (similar to) Question Help (in millions of dollars) 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 Year 1 Year 2 Revenues 103.7 161.3 COGS and Operating expenses (other than depreciation) 46.7 51.5 Depreciation 24.9 39.6 Increase in working capital 3.9 7.2 Capital expenditures 33.4 41.9 Corporate tax rate 20% 20% a. What are the incremental earnings for this project for years 1 and 27 b. What are the free cash flows for this project for the first two years? a. What are the incremental earnings for this project for years 1 and 2? The incremental earnings for year 1 is $ |million. (Round to one decimal place.)