You are reviewing the cash flows estimated by an analyst for a ten-year project. The after-tax cash flow each year is expected to be $55 million, but those cash flows are after an allocation of $ 15 million in G&A expenses to this project each year. If only 35% of these G&A expenses are variable (and related to this project) and the tax rate is 40%, what is the correct incremental cash flow each year on this project?

a.

33.85

b.

55.21

c.

70.69

d.

60.85