Suppose a firm's tax rate is 35%. a. What effect would a $10.21 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would a $9.45 million capital expense have on this year's earnings if the capital is depreciated at a rate of $1.89 million per year for five years? What effect would it have on next year's earnings? a. What effect would a $10.21 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.)
