See Table 2.5 E showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $12.6 million at the end of 2016, and this equipment was depreciated by $4.2 million per year in 2017, 2018, and 2019. Given Mydeco's tax rate of 35%, what impact would this additional purchase have had on Mydeco's net income in years 2016-2019? (Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash balances.) Calculate the new net income below: (Round to one decimal place.) (millions) Year 2016 2017 2018 2019 Net Income $ $ $ $ Additional Depreciation $ TA $ Tax Savings $ FA $ $ $ $ New Net Income $ $ 2016 - 2015 2017 2018 2019 405.6 367.9 421.5 512.2 608.1 (184.8) (178.7) (208.7) (248.4) (297.9) 220.8 189.2 212.8 263.8 310.2 (67.0) (68.4) (81.7) (100.9) (123.4) (62.4) (57.9) (60.0) (65.2) (79.8) (27.5) (26.4) (33.8) (37.8) (38.5) 63.9 36.5 37.3 59.9 68.5 (32.0) (32.6) (32.5) (38.2) (37.8) 31.9 3.9 4.8 21.7 30.7 (11.2) (1.4) (1.7) (7.6) (10.7) 20.7 2.5 3.1 14.1 20 54 54 54 54 54 $0.38 $0.05 $0.06 $0.26 $0.37 2015 2016 2017 2018 2019 48.8 78.4 69.2 67.9 78.8 78.1 86.1 88.9 34.3 33.6 172 2 3 Income Statement 4 Revenue 5 Cost of Goods Sold 6 Gross Profit 7 Sales and Marketing 8 Administration 9 Depreciation & Amortization 10 EBIT 11 Interest Income (Expense) 12 Pretax Income 13 Income Tax 14 Net Income 15 Shares outstanding (millions) 16 Earnings per share 17 Balance Sheet 18 Assets 19 Cash 20 Accounts Receivable 21 Inventory 22 TotalCurrent Assets 23 Net Property, Plant & Equip. 24 Goodwill & Intangibles 25 Total Assets 26 Liabilities & Stockholders' Equity 27 Accounts Payable 28 Accrued Compensation 29 Total Current Liabilities 30 Long-term Debt 31 Total Liabilities 32 Stockholders' Equity 33 Total Liabilities & Stockholders' Equity 34 Statement of Cash Flows 35 Net Income 36 Depreciation & Amortization 37 Chg. in Accounts Receivable 38 Chg. in Inventory 39 Chg. in Pay. & Accrued Comp. 40 Cash from Operations 41 Capital Expenditures 42 Cash from Investing Activ. 43 Dividends Paid 44 Sale (or purchase) of stock 45 Debt Issuance (Pay Down) 46 Cash from Financing Activ. 47 Change in Cash 48 Mydeco Stock Price 62.9 70.6 32.2 165.7 248.1 364.1 777.9 30.7 177.4 347.3 364.1 26.5 174.1 312.2 364.1 850.4 248.6 364.1 784.7 197.8 344.3 364.1) 906.2 888.8 43 19.4 16.3 20.4 27.8 33.2 6.6 6.2 6.1 7.9 9.8 26 22.5 26.5 35.7 496.6 496.6 569.7 593.1 593.1 522.6 519.1 596.2 628.8 636.1 262.1 258.8 254.2 260 270.1 784.7 777.9 850.4 888.8 906.2 2015 2016 2017 2018 2019 2.5 3.1 14.1 20 27.5 26.4 33.8 37.8 38.5 3.9 18.3 1.4 (9.6) (7.3) (2.9) 2.1 5.7 (4.2) (2.9) 3.2(3.5) 4 9.2 7.3 52.4 45.8 48 47.3 55.6 (26.8) (26.1) (100.0) (75.6). (39.3) (26.8) (26.1) (100.0 (75.6) (39.3) (5.6) (5.6) (5.6) (5.6) (6.1) 20.7 (5.6) (5.6) 73.1 67.5 15.5 (10.5) $7.71 23.41- 17.8 (6.1) 10.2 $11.46 20 14.1 $5.33 $7.72 $3.51 49