Grommit Engineering expects to have net income next year of $$45\mathrm{.}22$ million and free cash flow of $$22\mathrm{.}07$ million. Grommit's marginal corporate tax

rate is $20\%.$

a$.$ If Grommit increases leverage so that its interest expense rises by $$10\mathrm{.}21$ million, how will net income change?

b$.$ For the same increase in interest expense, how will free cash flow change?

a$.$ If Grommit increases leverage so that its interest expense rises by $$10\mathrm{.}21$ million, how will net income change?

Net income will fall to $ million. $($Round to two decimal places.$)$

b$.$ For the same increase in interest expense, how will free cash flow change? $($Select the best choice below.$)$

A$.$ Free cash flow decreases by the amount of the interest expense.

B$.$ Free cash flow increases by the amount of the interest expense.

C$.$ Free cash flow is not affected by interest expense.

D$.$ None of the above.