In: Finance
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?