Suppose a$$ firm's tax rate is $28\%28\%.$

a$.$ What effect would a $$$$9\mathrm{.}679\mathrm{.}67$ million operating expense have on this$$ year's earnings? What effect would it have on next$$ year's earnings?

b$.$ What effect would anan $$$$8\mathrm{.}258\mathrm{.}25$ million capital expense have on this$$ year's earnings if the capital is depreciated at a rate of $ $1\mathrm{.}65$$$1\mathrm{.}65$ million per year for five$$ years? What effect would it have on next$$ year's earnings?

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Part $1$

a$.$ What effect would a $$$$9\mathrm{.}679\mathrm{.}67$ million operating expense have on this$$ year's earnings?

Earnings would increase$($decline$)$ by $$$enter your response here million. $($Round to two decimal$$ places, and use a negative number for a$$ decline.$)$

Part $2$

What effect would it have on next$$ year's earnings? $($Select the best choice$$ below.$)$

A$.$

Next$$ year's earnings will be affected by the same amount.

B$.$

Next$$ year's earnings will be affected by a decline of $$$$2\mathrm{.}712\mathrm{.}71$ million.

C$.$

Next$$ year's earnings will be affected by an increase of $$$$2\mathrm{.}712\mathrm{.}71$ million.

D$.$

There would be no effect on next$$ year's earnings.

Part $3$

b$.$ What effect would anan $$$$8\mathrm{.}258\mathrm{.}25$ million capital expense have on this$$ year's earnings if the capital is depreciated at a rate of $ $1\mathrm{.}65$$$1\mathrm{.}65$ million per year for five$$ years? What effect would it have on next$$ year's earnings?

Earnings would be higher$($lower$)$ each year by $$$enter your response here million. $($Round to two decimal$$ places, and use a negative number for a$$ decline.$)$