Philip Enterprises is considering a new project. The project will has earnings before interest and taxes equal to $800,000 a year for three years. The project will require a net working capital of $140,000. The net working capital will be released at maturity of the project. The initial cash investment in the project will be $1,200,000 and will be depreciated to zero over three years. Taxes equal $0 per year. It generates a depreciation of $400,000 per year. Answer the following questions on the basis of this information? What will be the total cash flow in year 3?

Group of answer choices

A.$1,200,000

B.$800,000

C.$1,340,000

D.$1,500,000