Nokela Industries purchases a $$43\mathrm{.}6$ million cyclo$-$converter. The cyclo$-$converter will be depreciated by $$10\mathrm{.}9$ million per

year over four years, starting this year. Suppose Nokela's tax rate is $25\%.$

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 $$1$ 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.$)$Nokela Industries purchases a $ $43\mathrm{.}6$ million$$ cyclo$-$converter. The$$ cyclo$-$converter will be depreciated by $ $10\mathrm{.}9$ million per year over four$$ years, starting this year. Suppose$$ Nokela's tax rate is $25\%.$

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?