Solution-What are the free cash flows for this project for

What are the free cash flows for this project for years

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Question - 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):

	Year 1	Year 2
Revenues	126.7	169.5
COGS and Operating Expenses? (other than? depreciation)	47.8	61.4
Depreciation	23.2	35.2
Increase in Net Working Capital	2.5	8.1
Capital Expenditures	32.1	35.5
Marginal Corporate Tax Rate	35?%	35?%

Required -

a. What are the incremental earnings for this project for years 1 and? 2??

b. What are the free cash flows for this project for years 1 and? 2?

Reference no: EM133072866

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What are the free cash flows for this project for years

Reference no: EM133072866

Reference no: EM133072866

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