Jacobi. Inc recently reported the company made significant upgrades resulting in expenditures on fixed assets and net operating working capital totaled $1.2 million if Jacobi has sales of $4.50 million variable cost of 40% of sales depreciation of $1.2 million and had a tax rate of 30% how much was its free cash flow, in millions?

a. 1.88

b. -1.05

c. 0.98

d. none of these

e. 1.05