A project requires an initial investment in equipment and machinery of $10 million.

The equipment is expected to have a five-year lifetime with no salvage value and

will be depreciated on a straight-line basis The project is expected to generate

revenues of $51 million each year for the five years and have operating expenses

(not including deprecation) amounting to one-third of revenues. The tax rate is 40%.

What is the net cash flow in year 1?

a. $284 million

b. $340 million

c $0.84 million

d. $204 million