Hoover Publishing is trying to estimate the Year $1$ operating cash flow for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information:

Sales revenues

$$13\mathrm{.}1$ million

Operating costs

$6\mathrm{.}7$ million

Interest expense

$1\mathrm{.}8$ million

Hoover has also determined that this project would cannibalize one of its other projects by $$1\mathrm{.}3$ million of cash flow $($before taxes$)$ per year. The firm has a $35$ percent tax rate, and its WACC is $12$ percent. Calculate the project$$s operating cash flow for Year $1.*$PLEASE SHOW WORK WITHOUT EXCEL$*$ CORRECT ANSWER IS

a$.$ $$2,145,000$

b$.$ $$4,160,000$

c$.$ $$2,990,000$

d$.$ $$515,000$