Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions).

Year	1	2
Revenues	1,100	1,425
Operating expense	425	550
Depreciation	230	270
Increase in working capital	60	70
Capital expenditures	270	320
Corporate tax-rate	20%	20%

The depreciation tax shield for Shepard Industries project in year 1 is closest to:

A. $69

B. $46

C. $55

D. $54