A Firm Reports That in a Certain Year It Had

Multiple Choice

A firm reports that in a certain year it had revenues of $4.5 million,costs of $1.2 million,a capital cost allowance (CCA) deduction of $2.8 million,capital expenditures of $2.3 million,and net working capital decreased by $1.5 million.If the firm's marginal corporate tax rate is 30%,what is the firm's free cash flow for that year?

A) $5.3 million
B) -$0.65 million
C) $1.75 million
D) $2.15 million
E) $2.35 million