Champagne, Inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 million during 2021. The firm purchased $700,000 of equipment during the year while increasing its inventory by $500,000 (with no corresponding increase in current liabilities). The marginal tax rate for Champagne is 30 percent.. What are Champagne's cash flows associated with investments for 2021?

A. $500,000

B. $700,000

C.$1,200,000

D. None of the above.

What is Champagne's cash flow from operations for 2021?

A. $2,050,000

B. $2,500,000

C. $3,250,000

D. $4,000,000

What is Champagne's free cash flow for 2021?

A. $2,050,000

B. $2,500,000

C. $3,250,000

D. $4,000,000