Exhibit 9-1 A Project Requires an Initial Investment in Equipment and Machinery

Exhibit 9-1
A project requires an initial investment in equipment and machinery of $10 million. The equipment is expected to have a 5-year lifetime with no salvage value and will be depreciated on a straight-line basis. The project is expected to generate revenues of $5.1 million each year for the 5 years and have operating expenses (not including depreciation) amounting to 1/3 of revenues.
-Refer to Exhibit 9-1.The tax rate is 40%.What is the net cash flow in year 1?

A) 2.84m
B) 3.40m
C) 0.84m
D) 2.04m