Problem:
Vasudevan Inc. recently reported operating income of $2.75 million, depreciation of $1.20 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and CHANGE in net operating working capital totaled $0.6 million. How much was its free cash flow, in millions?
Select one:
a. $2.25
b. $2.14
c. $1.93
d. $2.36
e. $2.03
Note:Provide specific examples to support your answers.