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 rate of 35%,what impact would this additional purchase have had on Mydeco's net income in years 20152018?

(Assume the equipment is paid for out of cash and that Mydeco earns no interest on its cash balances.)

2014-2018 Financial Statement Data and Stock Price Data for Mydeco Corp. (All data as of fiscal year end; in $ millions) 2015 2016 2014 404.3 (188.3) 216.0 (66.7) (60.6) (27.3) 61.4 (33.7) 27.7 (9.7) 18.0 55 $0.33 2014 363.8 (173.8) 190.0 (66.4) (59.1) (27.0) 37.5 (32.9) 4.6 (1.6) 3.0 55 $0.05 2015 424.6 (206.2) 218.4 (82.8) (59.4) (34.3) 41.9 (32.2) 9.7 (3.4) 6.3 55 $0.11 2016 2017 510.7 (246.8) 263.9 (102.1) (66.4) (38.4) 57.0 (37.4) 19.6 (6.9) 12.7 55 $0.23 2017 2018 604.1 (293.4) 310.7 (120.8) (78.5) (38.6) 72.8 (39.4) 33.4 (11.7) 21.7 55 $0.39 2018 Income Statement Revenue Cost of Goods Sold Gross Profit Sales and Marketing Administration Depreciation & Amortization EBIT Interest Income (Expense) Pretax Income Income Tax Net Income Shares Outstanding (millions) Earnings per Share Balance Sheet Assets Cash Accounts Receivable Inventory Total Current Assets Net Property, Plant & Equipment Goodwill & Intangibles Total Assets Liabilities & Stockholders' Equity Accounts Payable Accrued Compensation Total Current Liabilities Long-Term Debt Total Liabilities Stockholders' Equity Total Liabilities & Stockholders' Equity Statement of Cash Flows Net Income Depreciation & Amortization Change in Accounts Receivable Change in Inventory Change in Pay. & Accrued Comp. 48.8 88.6 33.7 171.1 245.3 361.7 778.1 68.9 69.8 30.9 169.6 243.3 361.7 774.6 86.3 69.8 28.4 184.5 309.0 361.7 855.2 77.5 76.9 31.7 186.1 345.6 361.7 893.4 85.0 86.1 35.3 206.4 347.0 361.7 915.1 18.7 17.9 6.4 26.8 8.1 34.9 600.0 6.7 25.4 500.0 525.4 252.7 778.1 22.0 7.0 29.0 575.0 604.0 251.2 855.2 24.3 500.0 524.3 250.3 774.6 31.7 9.7 41.4 600.0 641.4 273.7 915.1 634.9 258.5 893.4 2016 2014 18.0 27.3 3.9 (2.9) 2.2 2015 3.0 27.0 18.8 2.8 (1.1) 6.3 34.3 0.0 2.5 4.7 2017 12.7 38.4 (7.1) (3.3) 5.9 2018 21.7 38.6 (9.2) (3.6) 6.5