Al Peters Totally Serial Enterprises is considering replacing the company's Now TV Network with the ManBearPig Adventure Network. The new networks motto would be ManBearPig is half man, half bear, and half pig; and were got to find him! Were totally serial! The Current TV Network was started two years ago at a cost of $120 million with an expected useful life of 8 years. This old project cost is being depreciated to zero over its 8-year useful life using simplified straight-line depreciation. The Current TV Network can be sold today for $100 million. If this network had been kept, it would have had a salvage value of $20 million at the end of its expected useful life six years from today. The ManBearPig Adventure Network would cost $160 million to start today, and its expected useful life is 6 years and it falls in the 5-year MACRS depreciation class ( depreciation rates, Yr 1: 20%, Yr 2: 32%, Yr 3: 19%, Yr 4: 12%, Yr 5: 11%, Yr 6: 6%) The ManBearPig Network is expected to have a salvage value of $50 million at the end of the its 6-year life. The ManBearPig Network is expected to increase Totally Serial Enterprises' annual revenues and operating expenses by $60 million and $20 million respectively over the old Current Network during the 6-year expected life. The company's marginal tax rate is 40%, and this project has a weighted average cost of capital of 13% What is the Year 2 operating cash flow for this replacement project?

	A.	$24.00 million
	B.	$47.48 million
	C.	$32.48 milllion
	D.	$38.48 million
	E.	$48.72 million