Problem Solving

A dishonest milkman sells a 40-liter mixture of milk and water that contains milk and water in the ratio of 3:2. He takes out 20 liters of the mixture and replaces it with an equal amount of milk. He then takes out 20 liters of this new mixture and replaces it with an equal amount of water to create his final mixture. What is the ratio of milk and water in the final mixture?

A. 2:5
B. 3:5
C. 2:3
D. 3:2
E. 5:3

[spoiler]OA=C[/spoiler]

Source: Veritas Prep