A $20 Million Project Is Expected to Return $23 Million

A $20 million project is expected to return $23 million next year. Your firm is in a 40% combined federal and state marginal income tax bracket. You finance the project with $10 million in debt at a rate of 8%.
-Refer to the information above. What amount do you save in taxes by using debt instead of cash to finance the project?

A) $480,000
B) $800,000
C) $80,000
D) $320,000