A project will produce incremental revenues of $3.5 million per year with incremental costs of $1.5 million. Depreciation expense is $0.6 million and the tax rate is 28%. If the project is accepted the company will spend $8.5 million on capital expenditures while immediately increasing their inventory $0.3 million. What is the Free Cash Flow for Year 0?

-$6.8 million

-$5.5 million

-$8.8 million

-$7.2 million