Shepard Industries is evaluating a proposal to expand its current distribution facilities. Management has projected the project will produce the following cash flows for the first two years (in millions). 2 Year Revenues Operating Expense Depreciation Increase in working capital Capital expenditures Marginal corporate tax rate 1 1200 450 240 60 300 21% 1400 525 280 70 350 21% The free cash flow from the Shepard Industries project in year one is closest to: $283 million $43 millon $210 million $403 million $643 million $5 million $343 million $300 million $390 million