16. 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): LOADING....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?**round to one decimal** Twitte expenses.)b. What areley®% Off Aa. What areexpenses.)Digest fCalculate thIncremSeries CSalestion - THOperatiDeprecNew onEBITData table(Click on the following icon in order to copy its contents into a spreadsheet.)Year 1Revenues126.748.1Operating Expenses (other than depreciation)Depreciation20.5Increase in Net Working Capital2.3Capital Expenditures29.3Marginal Corporate Tax Rate21%4Year 2162.359.236.37.642.521%- X Elmdale Enterprises is deciding whether to expand its production facilities. Although long-term cash flows are difficult to estimate, management has projected theat following cash flows for the first two 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 operating20 expenses.)b. What are the free cash flows for this project for years 1 and 2?PhaBEEEDr 5a. 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 operatingexpenses.)ZzaCalculate the incremental earnings of this project below: (Round to one decimal place.)Incremental Earnings Forecast (millions)0518Year 1Year 2Sales$$logOperating Expenses$$Depreciation$$SI-EEBIT$$All PIncome tax at 21%$$Unlevered Net Income$$for 4b. What are the free cash flows for this project for years 1 and 2?GasliCalculate the free cash flows of this project below: (Round to one decimal place.)Free Cash Flow (millions)Year 1Year 2ThankUnlevered Net Income$n HBODepreciation$$Capital Expenditure$initiaChange in NWCs withFree Cash FlowRomS$$$$every meal(-2.47%) S&Ppur communityour account uChange Orderbunt youoff.RUNNING OUT GEt your commet podium and scare It's been a busy962085 Estimatedoney transfer servicht Money credited to

To find: Incremental earnings Freecash flow

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): LOADING... . 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? **round to one decimal**

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): LOADING... . 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? round to one decimal

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...

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