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M lest. Midterm Spring 2021 T/TH Time Remaining: 01:15:29 Submit Test This Question: 1 pt 20 of 20 (0 complete) This Test: 20 pts possible of Suppose a firm's tax rate is 25%. a. What effect would a $10.41 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would an $11.35 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2.27 million per year for five years? What effect would it have on next year's earnings? a. What effect would a $10.41 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.) A. There would be no effect on next year's earnings. 12: B. Next year's earnings will be affected by a decline of $2.60 million. 12:1 C. Next year's earnings will be affected by the same amount. D. Next year's earnings will be affected by an increase of $2.60 million. b. What effect would an $11.35 million capital expense have on this year's earnings if the capital is depreciated at a rate of $2.27 million per year for five years? 11:11 What effect would it have on next year's earnings? Farnine would he hinhor /Inwork cash veer hu l I million (Pound to twin decimal places and lice a nenative number for a darling 10:50 A Click to select your answer(s) 10:39 A 10:07 AN