A firm is considering taking a project that will produce $$12$ million of revenue per year. Cash

expenses will be $$5$ million, and depreciation expenses will be $$1$ million per year. If the firm

takes that project, then it will reduce the cash revenues of an existing project by $$3$ million.

What is the firm's cash flow from operations on the project, per year, if the firm uses a $30$

percent marginal tax rate?

none of these

$$3\mathrm{.}1$ million

$$5\mathrm{.}2$ million

$$2\mathrm{.}8$ million

$$2\mathrm{.}4$ million