y (Cost ues - Fecie ale: 22. Vernon-Nelson Chemicals is planning to release a new liquid product. Buying new equipment to manufacture the product will cost $15 million, and there will be an additional $2 million cost to reconfigure the existing plant. The equipment is expected to have a lifetime of nine years and will be depreciated by the straight-line method over its lifetime. The firm expects that they should be able to sell 1,500,000 gallons per year at a price of $53 per gallon. It will take $36 per gallon to manufacture and support the product. If Vernon- Nelson's marginal tax rate is 40%, what are the incremental earnings after tax in year 3 of this project? a. $25.5 million b. $14.3 million c. $23.8 million . are d. $9.5 million