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Can anyone help me to do this question. Thank you so much! Exercise II Epiphany Industries is considering a new capital budgeting project that will
Can anyone help me to do this question. Thank you so much!
Exercise II 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: 0 1 150,000 75,000 25,000 2 150,000 75,000 25,000 3 150,000 75,000 25,000 Year Sales (Revenues) Cost of Goods Sold (50% of Sales) Depreciation Taxes rate (35%) H(-) increase/(decrease) in working capital capital expenditures 5,000 5,000 -10,000 -90,000 5. Find EBIT for year 1, 2 and 3. 6. Find OCF for year 1, 2 and 3. 7. Find Free cash flow for 1, 2 and 3. 8. Find NPVStep by Step Solution
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