Assume that the book value of a machine at the end of the project was set at $8 million, but it is sold for $5 million instead. if the tax rate is 25% then the firm will

A. pay additional taxes of $0.75 million

B. have $3 million of after-tax proceeds from the sale of the machine

C. receive $3.75 million of after-tax proceeds from the sale of the machine

D receive $5.75 million of after tax proceeds from the sale of thr machine

E. pay additional taxes of $2 million