Question: A company buys tracking software for its warehouse which, along with the computer system and ancillaries to run it will cost $1.5 million. This purchase

 A company buys tracking software for its warehouse which, along with

A company buys tracking software for its warehouse which, along with the computer system and ancillaries to run it will cost $1.5 million. This purchase will be deducted over five years. It is expected that the software will reduce inventory by $10.6 million at the end of the first year after it is installed, though there will be an annual cost of $120,000 per year to run the system. If the company's marginal tax rate is 20%, how will the purchase of this item change the company's free cash flows in the first year? A. $9.51 million OB. $10.3 million O C. $11.62 million OD. $10.56 million

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