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Year 1 Year 2 Revenues 120.8 150.6 COGS and Operating Expenses​ (other than​ depreciation) 46.1 54.5...

Year 1

Year 2

Revenues

120.8

150.6

COGS and Operating Expenses​ (other than​ depreciation)

46.1

54.5

Depreciation

24.9

32.9

Increase in Net Working Capital

2.8

8.2

Capital Expenditures

29.2

38.4

Marginal Corporate Tax Rate

35​%

35​%

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?

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jeff jeffy answered 2 months ago
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