What effect would it have on next year earnings

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Reference no: EM131932065

Suppose a firm's tax rate is 30 %. a. What effect would a $ 10.07 million operating expense have on this year's earnings What effect would it have on next year's earnings? b. What effect would a $ 10.2 million capital expense have on this year's earnings if the capital expenditure is depreciated at a rate of $ 2.04 million per year for five years? What effect would it have on next year's earnings?

Reference no: EM131932065

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