One of your clients owns a chain of tire stores, and they have asked you to help decide if the firm should acquire a new tire machine for each store that will cost a total of $600,000. The company has total annual revenue of $6.3 million, and the new machine is expected to generate $300,000 per year in additional revenue based on faster tire changes resulting in higher volumes. The Revenue number you will use for calculating free cash flow for this project is:

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The answer should be b.

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