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Suppose a firm's tax rate is 25%. What effect would an $11.95 million capital expense have on this year's earnings if the capital is deprecialed
Suppose a firm's tax rate is 25%. What effect would an $11.95 million capital expense have on this year's earnings if the capital is deprecialed at a rate of $2.39 million per year for 5 years? What effect would it have on next year's earnings?
(Round to two decimal places, and use a negative number for a decine.)
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