Problem 9-6 Question Help Etobicoke 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). Click on the icon located on the top-right corner of the data table below to copy its information into a spreadsheet. Year 1 126 40 29 Year 2 153 61 34 Revenues Cost of goods sold and Operating Expenses other than depreciation Capital cost allowance Increase in working capital Capital Expenditures Marginal Corporate Tax Rate 25 35% 36 35% a. What are the incremental eamings 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 the first two years? a. Calculate the incremental earnings for Year 1 of this project below Incremental Earnings Forecast (millions) Sales Operating Expenses CCA EBIT Income tax at 35% Unlevered Net Income Round the final answer to two decimal places. Round all intermediate values to two decimal places as needed.) Year 1