In the Fourth Year of the Vidler Project, Expected Revenues

Multiple Choice

In the fourth year of the Vidler Project, 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.