Watson Oil recently reported (in millions) $8,250 of sales, $5,150 of operating costs other than depreciation, and $1,350 of depreciation. The company had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 25%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to make $1,450 of capital expenditures on new fixed assets and to invest $200 in net operating working capital. By how much did the firm's net income exceed its free cash flow?

a. $1,270.00 million

b. $180.00 million

c. $97.50 million

d. $20.00 million

e. $257.50 million