Suppose a firm's tax rate is 35%. a. What effect would a $10.34 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would a $12.05 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2.41 million per year for five years? What effect would it have on next year's earnings? a. What effect would a $10.34 million operating expense have on this year's earnings? Earnings would increase (decline) by $million. (Round to two decimal places, and use a negative number for a decline.) What effect would it have on next year's earnings? (Select the best choice below.) O A. There would be no effect on next year's earnings. O B. Next year's earnings will be affected by an increase of $3.62 million. O C. Next year's earnings will be affected by the same amount. OD. Next year's earnings will be affected by a decline of $3.62 million. b. What effect would a $12.05 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2.41 million per year for five years? What effect would it have on next year's earnings? Earnings would be higher (lower) each year by $ million. (Round to two decimal places, and use a negative number for a decline.) A friend asks to borrow $54 from you and in return will pay you $57 in one year. If your bank is offering a 6.1% interest rate on deposits and loans: a. How much would you have in one year if you deposited the $54 instead? b. How much money could you borrow today if you pay the bank $57 in one year? c. Should you loan the money to your friend or deposit it in the bank? a. How much would you have in one year if you deposited the $54 instead? If you deposit the money in the bank today you will have $ in one year. (Round to the nearest cent.) b. How much money could you borrow today if you pay the bank 557 in one year? You will be able to borrow $ today. (Round to the nearest cent.) c. Should you loan the money to your friend or deposit it in the bank? (Select from the drop-down menu.) From a financial perspective, you should as it will result in more money for you at the end of the year