Dunedin Oats Ltd. plans to launch a new type of oats, NuttyOats. The project requires installation of a production line which will cost $ 10m in equipment and $ 2m in installation fees (these cash flows are incurred at year 0). The operating cash flow from NuttyOats is expected to be $ 6m in each of the following three years (t=1, 2, 3). Some existing customers will purchase Nutty Oats instead of other types of oats manufactured by Dunedin Oats Ltd. The company estimates that as a result of launching Nutty Oats, cash flows from other existing products will drop as much as $2 m in each of the following three years (t=1, 2, 3) due to the introduction of NuttyOats. In year 0, the company also needs to invest in working capital (ANWC=$2m) which will be retired at year three in full amount. The manufacturer of equipment agrees to purchase the production line back at the end of year three for $5m. Assume that the equipment is depreciated over three-years using a straight-line depreciation and a marginal tax rate of 20% What is the free cash flow in year three? A. 8m O B. 14m O C. none of the above answer is correct OD. 10m E. 12m