Nokela Industries purchases a $$42\mathrm{.}0$ million cyclo$-$converter. The cyclo$-$converter will be depreciated by $$10\mathrm{.}5$ million per year over four years, starting this year.

Suppose Nokela's tax rate is $40\%.$

a$.$ What impact will the cost of the purchase have on earnings for each of the next four years?

b$.$ What impact will the cost of the purchase have on the firm's cash flow for the next four years?

a$.$ What impact will the cost of the purchase have on earnings for each of the next four years?

Earnings will

by $ million each year for four years. $($Select from the drop$-$down menu and round to one decimal place.$)$

b$.$ What impact will the cost of the purchase have on the firm's cash flow for the next four years?

The impact on the firm's cash flow in year $1$ is $ million. $($Round to one decimal place.$)$

The impact on the firm's cash flow in years two through four is $ million. $($Round to one decimal place.$)$