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 projections: Year O Sales (Revenues) 100,000 100,000 100,000 Cost of Goods Sold (50% of Sales) 50,000 50,000 50,000 Depreciation 30,000 30,000 30,000 = EBIT 20,000 20,000 20,000 Taxes (35%) 7000 7000 7000 = unlevered net income 13,000 13,000 13,000 + Depreciation 30,000 30,000 30,000 changes to working capital 5,000 5,000 -10,000 capital expenditures -90,000 What is the free cash flow to the firm (FCFF) for the first year of Epiphany's project