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).

Year	1	2
Revenues	1,150	1,400
Operating expense	375	525
Depreciation	240	300
Increase in working capital	50	80
Capital expenditures	300	350
Marginal corporate tax rate	20%	20%

The depreciation tax shield for Shepard Industries project in year 2 is closest to:

A.

$90

B.

$48

C.

$60

D. $72