The manager of Joytechs is considering investing in a new project based on the following information.

Joytechs' Market Value Balance Sheet ($ Millions) and Cost of Capital

Assets			Liabilities			Cost of Capital
Cash	0		Debt	300		Debt	6%
Other Assets	500		Equity	200		Equity	12%
						Tax rate (c)	31%

Joytechs' New Project Free Cash Flows (Millions)

Year	0	1	2	3
Free Cash Flows	($120)	$60	$80	$70

The manager assumes that this new project is of average risk for Joytechs and that the firm wants to hold constant its debt to equity ratio.

The debt capacity for Joytechs' new project in year 1 is closest to: