A firm is considering an investment in capital equipment. The equipment requires an initial cash outflow of $1,000,000, out of which $700,000 is financed with debt at a 4% cost of debt (kd) amortized as a regular annuity over 3 years, and $300,000 is financed with equity at a cost of equity of 12% (ke). The tax rate (t) is 30%. Given the 3-year life of the equipment, the depreciation schedule is as follows: Year 1, $333,000; Year 2, $445,000; Year 3, $148,000; and Year 4, $74,000. Some basic cash income and cash expense data for this equipment is shown below. Operating Cash Income (Olt) is $800,000 per year, years 1 to 3. Operating Cash Expenset (OE) is $300,000 per year, years 1 to 3. This investment's Arditti-Levy method cash outflow for year O is: a. $1,000,000 b. $700,000 C. $300,000 d. need to know depreciation amount in year 0