What effect would it have on next years earnings

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Reference no: EM132008476

Suppose a firm's tax rate is 35%.

a. What effect would a $10.15 million operating expense have on this year's earnings? What effect would it have on next year's earnings?

b. What effect would an $8.25 million capital expense have on this year's earnings if the capital is depreciated at a rate of $1.65 million per year for five? years? What effect would it have on next year's earnings?

Reference no: EM132008476

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