CathFoods Will Release a New Range of Candies Which Contain

CathFoods will release a new range of candies which contain antioxidants.New equipment to manufacture the candy will cost $2 million.The new equipment falls under asset class 43 and has a capital cost allowance (CCA) rate of 30%.It is expected that the range of candies will bring in revenues of $4 million per year for five years with production and support costs of $1.5 million per year.If CathFoods' marginal tax rate is 35%,what are the incremental free cash flows in the first year of this project?

A) -$0.27 million
B) $1.43 million
C) $1.46 million
D) $2.50 million
E) $4.0 million