A beverage company is preparing to release a new line of flavored seltzers which contain anti-oxidants. New equipment to manufacture the seltzer will cost $4 million, which will be depreciated by straight-line depreciation over six years. In addition, there will be $5 million spent on promoting the new seltzer line in the first year. It is expected that the company will be able to sell 500,000 cases of seltzer at a price of $12/case. Production costs are expected to be $3/case. If the company's marginal tax rate is 35%, what are the incremental earnings in the second year of this project? a $2.100 million O b. $3.833 million O c. $2.492 million O d. $1.950 million e $1.342 million A beverage company is preparing to release a new line of flavored seltzers which contain anti-oxidants. New equipment to manufacture the seltzer will cost $4 million, which will be depreciated by straight-line depreciation over six years. In addition, there will be $5 million spent on promoting the new seltzer line in the first year. It is expected that the company will be able to sell 500,000 cases of seltzer at a price of $12/case. Production costs are expected to be $3/case. If the company's marginal tax rate is 35%, what are the incremental earnings in the second year of this project? a $2.100 million O b. $3.833 million O c. $2.492 million O d. $1.950 million e $1.342 million