What impact will the cost of the purchase have on earnings

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1. ?Recently, More Money 4U offered an annuity that pays 6.3 % compounded monthly. If $ 1,946 is deposited into this annuity every? month, how much is in the account after 10 ?years? How much of this is? interest?

2. Nokela Industries purchases a $37.2 million? cyclo-converter. The? cyclo-converter will be depreciated by $9.3 million per year over four? years, starting this year. Suppose? Nokela's tax rate is 40%.

a. What impact will the cost of the purchase have on earnings for each of the next four? years?

b. What impact will the cost of the purchase have on the? firm's cash flow for the next four? years?

Reference no: EM131880150

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