Question: Assume that a new project involves changing inventory strategies so that the firm can reduce the average inventory level by $1,000,000 per year from their

Assume that a new project involves changing inventory strategies so that the firm can reduce the average inventory level by $1,000,000 per year from their current levels for an indefinite period. If the strategy will cost $1,000,000 to implement, the firm has an 11 percent cost of capital, and the firm is in the 27% tax bracket, what are the yearly cash flows for this project?

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