Ref 11-1 Provo, Inc., Had Revenues of $10 Million, Cash Operating Expenses

Ref 11-1
Provo, Inc., had revenues of $10 million, cash operating expenses of $5 million, and depreciation and amortization of $1 million during 2008. The firm purchased $500,000 of equipment during the year while increasing its inventory by $300,000 (with no corresponding increase in current liabilities) . The marginal tax rate for Provo is 40 percent.
Reference: Ref 11-1
-Free cash flow: What is Provo's NOPAT for 2008?

A) $2,400,000
B) $2,600,000
C) $3,400,000
D) $4,000,000