A firm is considering to purchase an additional equipment for $502 million at the end...
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A firm is considering to purchase an additional equipment for $502 million at the end of this year, and this equipment will be depreciated using simple straight line method for 11 years starting next year. The firm's projected net income for this year is $4.2 billion, and $8.7 billion for next year. With the corporate tax rate at 33%, how much will next year's cash flow be increased/decreased with this additional equipment purchase? Remark: use a negative sign to indicate if there is a decreased on next year's cash flow. Answer in million dollars and round your answer to 2 decimals
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