Marcus LLC reported net income of $800 million in 2022, after interest expenses of $300 million (the corporate tax rate was 21%). It reported depreciation of $960 million in that year, and capital spending was $1.2 billion. The firm also had $4 billion in debt outstanding on the books, rated AA (carrying a yield to maturity of 6%), trading at par (up from $3.8 billion at the end of 2021). The beta of the stock is 1.05, and there were 200 million shares outstanding (trading at $60 per share), with a book value of $5 billion. Marcus LLC paid 40% of its earnings as dividends and working capital requirements are negligible. The treasury bond rate is 3%. The expected market risk premium is 5.5%. What is reinvestment in 2022?

Group of answer choices

300 million

240 million

960 million

12000 million