Suppose a firm's tax rate is 25%. a. What effect would a $10.00 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would a $10.00 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2.00 million per year for five years? What effect would it have on next year's earnings? a. What effect would a $10.00 million operating expense have on this year's earnings? million. (Round to two decimal places, and use a negative Earnings would increase (decline) by $ number for a decline.) 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 an increase of $2.50 million. C. Next year's earnings will be affected by a decline of $2.50 million. OD. There would be no effect on next year's earnings. b. What effect would a $10.00 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2.00 million per year for five years? What effect would it have on next year's earnings? million. (Round to two decimal places, and use a Earnings would be higher (lower) each year by $ negative number for a decline.)