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:

The free cash flow for the last year of Epiphany's project is closest to ________.

Group of answer choices

$65,750

$59,175

$49,313

$52,600

Epiphany Industnes 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 0 12 3 Sales (Revenues) $150.000 $150,000 $150,000 Cost of Goods Sold (50% of Sales) 75,000 75.000 75.000 Depreciation 20,000 20.000 20.000 E EBIT 55,000 55.000 55.000 Taxes (35%) 19.250 19.250 19.250 unlevered net income 35.750 35.750 35.750 Depreciation 20,000 20,000 20.000 +/) increase/decrease) in working capital 5.000 5.000 -10,000 capital expenditures -590,000 The free cash flow for the last year of Epiphany's project is closest to O $65.750 $59.175 $49.313