*18. Consider the financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for $12 million at the end of 2015 and this equipment was depreciated by $4 million per year in 2016, 2017, and 2018. Given Mydeco's tax ate of 35%, what impact would this additional purchase have had on Mydeco's net income in years 2015-2018? (Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash balances.) Click the icon to view the financial statement and stock price data. Calculate the new net income below. (Round to one decimal place.) (millions) Year 2015 2016 2017 2018 Net Income Additional Depreciation Tax Savings New Net Income Lab 1- 1/29/23, 11:07 AM 2014-2018 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ millions) Income Statement 2014 2015 2016 2017 2018 Revenue 404.3 363.8 424.6 510.7 604.1 Cost of Goods Sold (188.3) (173.8 (206.2) (246.8) 293.4) 216.0 190.0 218.4 263.9 310.7 Gross Profit Sales and Marketing (66.7) (66.4) (82.8) (102.1) (120.8) Administration (60.6) (59.1) (59.4) (66.4) (78.5) Depreciation & Amortization (27.3) (27.0) (34.3) (38.4) (38.6) EBIT 61.4 37.5 41.9 57.0 72.8 Interest Income (Expense) (33.7) (32.9) (32.2 (37.4 (39.4) Pretax Income 27.7 4.6 9.7 19.6 33.4 Income Tax (9.7) (1.6) (3.4) (6.9) (11.7 Net Income 18.0 3.0 6.3 12.7 21.7 Shares Outstanding (millions) 55 55 55 55 55 Earnings per Share 60.33 $0.05 $0.11 $0.23 $0.39 Balance Sheet 2014 2015 2016 2017 2018 Assets Cash 48.8 68.9 36.3 77.5 85.0 Accounts Receivable 88.6 69.8 69.8 76.9 86.1 Inventory 33.7 30.9 28.4 31.7 35.3 Total Current Assets 171.1 169.6 84.5 186.1 206.4 Net Property, Plant & Equipment 245.3 243.3 309.0 345.6 347.0 Goodwill & Intangibles 361.7 361.7 361.7 361.7 361.7 Total Assets 778.1 774.6 855.2 893.4 915.1 Liabilities & Stockholders' Equity Accounts Payable 18.7 17.9 22.0 26.8 31.7 Accrued Compensation 6.7 6.4 7.0 8.1 9.7 Total Current Liabilities 25.4 24.3 29.0 34.9 41.4 Long-Term Debt 500.0 500.0 575.0 600.0 600.0 Total Liabilities 525.4 24.3 604.0 634.9 641.4 Stockholders' Equity 252.7 250.3 251.2 258.5 273.7 Total Liabilities & Stockholders' 778.1 774.6 855.2 893.4 915.1 Equity Statement of Cash Flows 2014 2015 2016 2017 2018 Net Income 18.0 3.0 6.3 12.7 21.7 Depreciation & Amortization 27.3 27.0 34.3 38.4 38.6 Change in Accounts Receivable 3.9 18.8 0.0 (7.1 ) (9.2) Change in Inventory (2.9) 2.8 2.5 (3.3) (3.6) Change in Pay. & Accrued Comp. 2.2 (1.1) 4.7 5.9 6.5 Cash from Operations 18.5 50.5 17.8 46.6 54.0 Capital Expenditures (25.0) 25.0) (100.0) (75.0 (40.0) Cash from Investing Activ. (25.0) (25.0) (100.0) (75.0) (40.0) Dividends Paid (5.4) (5.4) (5.4) (5.4) (6.5) Sale (or Purchase) of Stock Debt Issuance (Pay Down) 75.0 25.0 Cash from Financing Activ. (5.4) (5.4) 59.6 19.6 6.5) Change in Cash 18.1 20.1 17.4 (8.8) 7.5 Mydeco Stock Price $7.92 $3.30 $5.25 $8.71 $10.89