5) Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects: Year Sales (Revenues) Cost of Goods Sold (50% of Sales) Depreciation EBIT Taxes (35%) unlevered net income + Depreciation +/-) increase/(decrease) in working capital capital expenditures 0 1 2 3 100,000 100,000 100,000 50,000 50,000 50,000 30,000 30,000 30,000 20,000 20,000 20,000 7000 7000 7000 13,000 13,000 13,000 30,000 30,000 30,000 5,000 5,000 5.000 -90,000 The free cash flow for the first year of Epiphany's project is closest to A) $45,600 B) $28,500 C) $38,000 D) $53,200