Question $12$

$1$ pts

A firm is considering taking a project that will produce $$12$ million of revenue per year. Cash expenses will be $$5$ million, and depreciation expenses will be $$1$ million per year. If the firm takes that project, then it will reduce the cash revenues of an existing project by $$3$ million. What is the firm's cash flow from operations on the project, per year, if the firm uses a $30$ percent marginal tax rate?

none of these

$$2\mathrm{.}4$ million

$$2\mathrm{.}8$ million

$$3\mathrm{.}1$ million

$$5\mathrm{.}2$ million