Coastal Pipeline Corp. anticipates cash flows from operating activities of $8 million in 20XX. It will need to spend $1.5 million on capital investments in order to remain competitive within the industry. Common share dividends are projected at $0.6 million and preferred dividends at $0.25 million.

a. What is the firms projected free cash flow for the year 20XX? (Enter the answer in millions. Round the final answer to 2 decimal places.)

Free cash flow $ million