A firm's investment in capital equipment requires an initial cash outflow of $1,000,000 The investments is financed with $600,000 in debt at a 4% annual cost of debt (kd) amortized as a regular annual annuity over 3 years, and $400,000 in equity at a 12% annual cost of equity (ke). The tax rate (t) is 30%. Given the 3-year life of the equipment, the depreciation schedule is as follows: Year 1, $333,000; Year 2, $445,000; Year 3, $148,000; and Year 4, $74,000. The equipment's annual cash income and cash expense data is shown below. Operating Cash Incomet (Olt) is 800,000 per year, years 1 to 3. Operating Cash Expenset (OEt) is $300,000 per year, years 1 to 3. This investment's Traditional method Net Cash Flow for year 1 is: a. $449,900 b. $240,891 O c. $457.100 O d. $100,100