The purchase cost for a new project is $20 million. The shipping and installation costs are $2 million. With the MACRS depreciation policy, what is the remaining book value of the fixed assets at the end of the first year if the project has a 4 year life?

(A)

$8.89 million

(B) This isn't correct answer

$9.78 million

(C)

$7.33 million

(D)

$14.67 million