Suppose you are a tax advisor to XYZ Corporation, and they have just received a proposal from a new supplier to provide all of their inventory needs. The supplier is located in a foreign country, and the corporation is considering whether to accept the proposal. You have been asked to provide a tax analysis of the proposal to help the corporation make an informed decision.

The proposal is as follows:

The supplier will provide all of XYZ Corporation's inventory needs for the next five years at a cost of $5 million per year.
The supplier is located in a country with a corporate tax rate of 15%.
XYZ Corporation is located in a country with a corporate tax rate of 25%.
XYZ Corporation will be required to pay for all shipping costs associated with the delivery of the inventory.
The supplier has offered to provide a discount of 5% on the total cost of inventory if XYZ Corporation agrees to pay for the entire five-year supply up front.
a) Calculate the total cost of the inventory over the five-year period, including any shipping costs. Also, calculate the amount of the discount offered by the supplier if XYZ Corporation pays for the entire five-year supply up front.

b) Calculate the total tax liability that XYZ Corporation would face if they accept the proposal and pay for the entire five-year supply up front. Also, calculate the total tax liability if XYZ Corporation does not accept the proposal and continues to purchase inventory from their current suppliers.

c) Based on your analysis in parts (a) and (b), make a recommendation to XYZ Corporation as to whether they should accept the proposal from the foreign supplier or not. Explain your reasoning.

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