Miami Medical Inc., expects to generate an annual EBIT of $2,000,000 and needs to obtain financing for $3,400,000 of assets. The companys tax bracket is 30%. If the firm uses short-term debt, its rate will be 5.2%, and if it uses long-term debt, its rate will be 7%. By how much will earnings after taxes change if the company chooses to use short-term debt financing for the first year?

A. $37,520

B. None of the above

C. $42,840

D. $45,910