Shepard Industries is evaluating a proposal to expand its current distribution facilities Management has projected the project will produce the following cash the first two years (in millions) Year Revenues Operating expense Depreciation Increase in working capital Capital expeditures Marginal corporate tax rate 1,050 350 240 1,350 575 260 40 80 270 320 30% 30% The depreciation tax shield for Shepard Industries project in year 1 is closest to O A $78 OB. 572 OC. 586 OD 5108