Given Omicron's new project free cash flows (FCF) as follows:

Year 0 1 2 3

FCF (100) 40 50 60

Tax rate = 35%

Debt-to-equity ratio = 2/3

WACC = 8.76%

Cost of debt = 6%

Interest tax shield for Year 2 is closest to __________.

A)1.06

B)0.46

C)1.2

D)0.81