ABC company plans to introduce a new line of basketball shoes. Here are the detailed projections: sales per year = 25,000 units @ $120 per unit; variable costs = $60 per unit; fixed costs = $225,000 per year; initial investment = $2,000,000; interest expense = $10,000 per year; project life = 10 years. CCA rate is 30%, Tax rate is 34%, and discount rate is 12%. What is the net income for this project in the third year? *A) $599,280 B) $357,000 C) $908,000 D) $498,300 E) $172,500

Please, explain.