See Table 2.5

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

$ 11.7

million at the end of

2013

,

and this equipment was depreciated by

$ 3.9

million per year in

2014

,

2015

,

and

2016

.

Given Mydeco's tax rate of

35 %

,

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.)