NC is trying to estimate the first-year operating cash flow for a proposed project. The financial staff has collected the following information: Proposed sales $10 million Operating costs (not including depreciation) $7 million Depreciation tax shield $0.2 million Interest expense $1.5 million The corporate tax rate is 40%.

What is the projects operating cash flow for the first year (t = 1)? Select one: a. $2,000,000 b. $1,880,000 c. $1,100,000 d. Neither of the above