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 Year Sales (Revenues) - Cost of Goods Sold (50% of Sales) Depreciation = EBIT - Taxes (35%) = unlevered net income + Depreciation + changes to working capital - capital expenditures 1 125,000 62,500 30,000 32,500 11,375 21,125 30,000 -5,000 2 125,000 62,500 30,000 32,500 11,375 21,125 30,000 -5,000 3 125,000 62,500 30,000 32,500 11,375 21,125 30,000 10,000 - 90,000 O A. $61,125 OB. $48,900 O C. $55,013 OD. $45,844 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 Year Sales (Revenues) - Cost of Goods Sold (50% of Sales) Depreciation = EBIT - Taxes (35%) = unlevered net income + Depreciation + changes to working capital - capital expenditures 1 125,000 62,500 30,000 32,500 11,375 21,125 30,000 -5,000 2 125,000 62,500 30,000 32,500 11,375 21,125 30,000 -5,000 3 125,000 62,500 30,000 32,500 11,375 21,125 30,000 10,000 - 90,000 O A. $61,125 OB. $48,900 O C. $55,013 OD. $45,844