FINANCE - ESTIMATING CASH FLOWS ON CAPITAL BUDGETING PROJECTS? 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?

a. $0 every year, forever b. -$1,000,000 today, and +$1,000,000 at the end of year one c. +$1,000,000 today and at the end of every year thereafter