Question: Think very carefully about whether that decrease in average yearly inventory of $150,000 represents an annual cash inflow of that amount. Think about that along

Think very carefully about whether that decrease in average yearly inventory of $150,000 represents an annual cash inflow of that amount. Think about that along with the sentence regarding Rossco's investing of the money made available from the reduction at its cost of capital of 11%.

For your own edification, try to use Excel's NPV function.

Check figure:NPV =$56,157

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