Suppose that Mizzou expects net sales to increase by $15 million annually (i.e. each year) over the projects five year lifespan. If annual variable costs are $2 million, fixed costs are $2 million, and depreciation is $8 million, the companys EBIT in years 1-5 (i.e. the annual amount) is __________. If Mizzous income is tax-exempt, the operating cash flows in years 1-5 (i.e. the annual amount) is __________.

$3 million; $3 million

$3 million; $8 million

$3 million; $11 million

$11 million; $3 million