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Suppose a firm's tax rate is 25%. a. What effect would a $9.68 million operating expense have on this year's earnings? What effect would it
Suppose a firm's tax rate is 25%.
a. What effect would a $9.68 million operating expense have on this year's earnings? What effect would it have on next year's earnings?
b. What effect would a $10.75 million capital expense have on this year's earnings if the capital is depreciated at a rate of$2.15 million per year for five years? What effect would it have on next year's earnings?
Earnings would increase (decline) by $ million. (Round to two decimal places, and use a negative number for a decline.)
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