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How do you calculate the 26.0? Im getting stuck on that part? Question...

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How do you calculate the 26.0? Im getting stuck on that part?

Question Help management has projected the following cash flows for the first two years (in millions of dollars): Year 1 Year 2 Revenues 120.9 153.3 Operating Expenses (other than depreciation) 36.2 66.1 CCA 24.1 28.1 Increase in Net Working Capital 3.2 7.7 Capital Expenditures 34.3 43.7 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 the first two years? v. VUIJUILLU TU TU UJIT HOW TUIT Tore provo VW. Trouma w no como pruv.) Free Cash Flow (millions) Year 1 CCA 24.1 Capital Expenditure (34.3) Change in NWC (3.2) Free Cash Flow 26.0 Calculate the free cash flows for Year 2 of this project below: (Round to one decimal place.) Free Cash Flow (millions) Year 2 Enter any number in the edit fields and then click Check

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