You have been provided the following information on BMS Inc, an all-equity financed manufacturer of building materials.

• In the most recent year, which was a bad one, the company made only 40 million in net income. It expects next year to be normal. The book value of equity of the company is 1 billion, and it expects next year a Return on Equity of 10%.
• The company expects to make 80 million in new capital expenditures next year. It expects depreciation, which was 60 million this year, to grow 10% next year.
• The company had revenues of 1.5 billion this year, and it maintained a non-cash working capital investment of 10% of revenues. It expects revenues to increase 20% next year and working capital to decline to 9.5% of revenues.

• Next years estimated net capital expenditure is:

  Select one:

  a. 60 million

  b. 80 million

  c. 14 million

  d. 88 million

  e. 20 million