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Nokela Industries purchases a $40million cyclo-converter.The cyclo-converter will be depreciated by $10million per year over four years,starting this year.Suppose Nokelas tax rate is 30%. Question:

Nokela Industries purchases a $40million cyclo-converter.The cyclo-converter will be depreciated by $10million per year over four years,starting this year.Suppose Nokelas tax rate is 30%.

Question: What impact will the cost of the purchase have on the firms cash flow for the next four years?

***I have the solution but I don't understand it. Can someone explain?

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