XYZ Has Excess Cash of $600,000 and Earns 3% on Excess

XYZ has excess cash of $600,000 and earns 3% on excess cash.The firm plans to pay back $500,000 of debt this year,after paying the full annual interest on its debt.If XYZ has a corporate tax rate of 40%,what is the free cash flow to the firm?

A) $550,000
B) $1.55 million
C) $1 million
D) $1.1 million
E) $1.05 million