After paying 3 million for a feasibility study, cougar goods ltd. wrote a proposal with the following cash flow estimates for a 20-year capital project. Equipment cost: 30 million, Shipping cost: 2 million, Installation: 20 million, Salvage: 4 million, Working capital investment: 2 million, Revenues are expected to increase by 20 million per year and cash operating expenses by 9 million per year. The firm's marginal tax rate is 40 percent, its weighted average cost of capital is 9% and the firm requires a 3-year payback. Assuming conventional straight-line depreciation, calculate the annual depreciation expense for this project.

A. 2.4 MILLION

B. 2.2 MILLION

C. 2.0 MILLION

D. 2.6 MILLION

E. NONE OF THE ABOVE