Nokela Industries purchases a $ 36.4 million? cyclo-converter. The? cyclo-converter will be depreciated by $ 7.28million per year over 5 ?years, starting this year. Suppose? Nokela's tax rate is 40%.
a. What impact will the cost of the purchase have on earnings for each of the next 5
b. What impact will the cost of the purchase have on the? firm's cash flow for the next 5