Slick Oil Company is evaluating a possible investment in a new pipeline. The investment will cost $25 million. $12 million of the cost is depreciable. The expected increase in EBDT in year 1 (based on the company making the investment) is $5 million. The company's tax rate is 35%. Assume the company uses the 5 year MACRS depreciation method (see below). Calculate the company's net cash flow for year 1 of the project. Five Year MACRS depreciation schedule. Yr1 .20; Yr2 .32; Yr3 .192; Yr4 .115; Yr5 .115; Yr6 .058

Group of answer choices

A. $4,090,000

B. $1,690,000

C. $2,400,000

D. $2,600,000