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	1,050	1,350
Operating expense	450	500
Depreciation	220	260
Increase in working capital	40	70
Capital expenditures	270	320
Marginal corporate tax rate	20%	20%

The depreciation tax shield for Shepard Industries project in year 2 is closest to:

A. $52

B.$ 44

C.$ 62

D.$ 78