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 Year Sales (Revenues) - Cost of Goods Sold (50% of Sales) - Depreciation = EBIT - Taxes (35%) = unlevered net income + Depreciation + changes to working capital 200,000 100,000 30,000 70,000 24,500 45,500 30,000 - 5000 2 200,000 100,000 30,000 70,000 24,500 45,500 30,000 - 5000 3 200,000 100,000 30,000 70,000 24,500 45,500 30,000 - 5000 - O A. $98,700 OB. $52,875 O C. $84,600 OD. $70,500