A Company Buys Tracking Software for Its Warehouse Which,along with the Computer

question 7

Multiple Choice

A company buys tracking software for its warehouse which,along with the computer system and ancillaries to run it,will cost $1.8 million.This purchase will be deducted over five years.It is expected that the software will reduce inventory by $10.5 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 40%,how will the purchase of this item change the company's free cash flows in the first year?

• A)$10,020,000
• B)$10,278,000
• C)$10,422,000
• D)$10,566,000

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Definitions:

Biomedical Therapy

Treatments for psychological disorders that involve interventions on a biological level, such as medication, surgical procedures, or alterations in diet.

Antipsychotic Drugs

Medications used to manage psychosis, including symptoms such as delusions, hallucinations, and disordered thinking.

Dopamine

A neurotransmitter involved in many functions, including mood, sleep, learning, motivation, reward, and motor control.

Counseling Psychologists

specialize in facilitating personal and interpersonal functioning across the lifespan, focusing on emotional, social, vocational, educational, health-related, developmental, and organizational concerns.