Champagne, Inc., had revenues of $12 million, cash operating expenses of $9 million, and depreciation and amortization of $2 million during 2008. The firm purchased $650,000 of equipment during the year while increasing its inventory by $550,000 and decreasing its accounts receivable by $50,000 (with no corresponding increase in current liabilities). The marginal tax rate for Champagne is 22 percent. Free cash flow: What is Champagne's free cash flow for 2008? $2.780,000 $2,130,000 $1,580,000 $1,630,000