XYZ Has Excess Cash of $400,000 and Earns 2

Multiple Choice

XYZ has excess cash of $400,000 and earns 2.5% on excess cash.If XYZ has a corporate tax rate of 30%,what is the free cash flow to the firm?

A) $1.09 million
B) $1.08 million
C) $1.073 million
D) $1.069 million
E) $1.21 million