Arnold inc. is considering a proposal to manufacture high end protein bars used as food supplements by body builders. The project requires an upfront investment into equipment of $1.4 million. This investment can be fully depreciated straight-line over the next 10 years for tax purposes. However, Arnold Inc. expects to terminate the project at the end of 8 years and to sell the machines and equipment for $0.5 million. The marginal corporate tax rate is 30%. What is the after-tax cash flow from selling the equipment?

a. $0.22 million b. $0.35 million c. $0.5 million d. $0.434