Given:

Firm A is all-equity financed and has total assets of $200 million.

Firm B is an identical firm to Firm A, but 70% of its $200 million of total assets are financed with debt bearing an interest rate of 5%.

Assume firms pay corporate taxes at the rate of 20% of taxable earnings. Both firms have the same EBIT, $15 million.

Compute Firm B's interest deduction.

Firm Bs interest deduction is $ ______ million. Keep the result with one decimal.

A. 7 million

B. 3.5 million

C. 1.4 million

D. OTHER