In the 4th Year of Project M, Expected Revenues Will

Multiple Choice

In the 4th year of project M, expected revenues will be $4,750,000, variable costs will be $4,000,000, depreciation expense $180,000, and fixed cash costs $570,000. Which of the following is true?

A) Accounting income equals $0.00
B) Free cash flow equals $180,000
C) Free cash flow equals 0
D) Both A and B are true.