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A company currently generates annual revenue of $1 million, and has a gross profit margin of 60% and a tax rate of 25%. Assume the

A company currently generates annual revenue of $1 million, and has a gross profit margin of 60% and a tax rate of 25%. Assume the company makes a purchase of $500,000 in year 20x1. What will be the DIFFERENCE in operating cash flow in year 20x5 if that purchase is expensed rather than straight line depreciated over its five year useful life?

A: $125,000

B: $25,000

C: There will be no difference in operating cash flow

D: $75,000

E: $100,000

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