NC is trying to estimate the first-year operating cash flow for a proposed project. The financial staff has collected the following information:

Proposed sales	$10 million
Operating costs (not including depreciation)	$7 million
Depreciation tax shield	$0.2 million
Interest expense	$1.5 million

The corporate tax rate is 40%. What is the projects operating cash flow for the first year (t = 1)?

Select one:

a. $2,000,000

b. $1,880,000

c. $1,100,000

d. Neither of the above