See Table 2.5

2012-2016 Financial Statement Data and Stock Price Data for Mydeco Corp.
(All data as of fiscal year end; in $ millions)
Income Statement	2012	2013	2014	2015	2016
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)
Gross Profit	216.0	190.0	218.4	263.9	310.7
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	(6.9)	(1.2)	(2.4)	(4.9)	(8.4)
Net Income	20.8	3.4	7.3	14.7	25.0
Shares Outstanding (millions)	55	55	55	55	55
Earnings per Share	$0.38	$0.06	$0.13	$0.27	$0.45
Balance Sheet	2012	2013	2014	2015	2016
Assets
Cash	48.8	69.3	87.7	80.9	91.7
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	170.0	185.9	189.5	213.1
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	775.0	856.6	896.8	921.8
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	524.3	604.0	634.9	641.4
Stockholders' Equity	252.7	250.7	252.6	261.9	280.4
Total Liabilities & Stockholders' Equity	778.1	775.0	856.6	896.8	921.8
Statement of Cash Flows	2012	2013	2014	2015	2016
Net Income	20.8	3.4	7.3	14.7	25.0
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	51.3	50.9	48.8	48.6	57.3
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)	69.6	19.6	(6.5)
Change in Cash	20.9	20.5	18.4	(6.8)	10.8
Mydeco Stock Price	$7.92	$3.30	$5.25	$8.71	$10.89

showing financial statement data and stock price data for Mydeco Corp. Suppose Mydeco had purchased additional equipment for

$12

million at the end of

2013,

and this equipment was depreciated by

$4

million per year in

2014,

2015,

and

2016.

Given Mydeco's tax rate of

25%,

what impact would this additional purchase have had on Mydeco's net income in years

2013-2016?

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