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CathFoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $4 million, which will be depreciated

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CathFoods will release a new range of candies which contain antioxidants. New equipment to manufacture the candy will cost $4 million, which will be depreciated by straight-line depreciation over five years. In addition, there will be $6 million spent on promoting the new candy line in the first year. It is expected that the range of candies will bring in revenues of $6 million per year for five years with production and support costs of $1.6 milion per year. If CathFood's marginal tax rate is 35%, what are the incremental free cash flows in the second year of this project? O A $3.700 million OB. $2.100 million C. $1.295 million OD. $3205 million

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