Tree Top Toys Needs to Finance Their New Production Facility

Tree Top Toys needs to finance their new production facility for spyglasses. The cost is $12 million. They expect to payout $6 million or 40% of their net cashflow. Any external financing will be raised 80% borrowings and the remainder equity. Unfortunately, the company has no internal excess short-term funds to use. How much total equity cashflow will be used?

A) $0.6 million.
B) $2.4 million.
C) $9.0 million.
D) $9.6 million.
E) $3.0 million.