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: 0 1 2 3 100,000 100,000 100,000 50,000 50,000 50,000 Year Sales (Revenues in $) - Cost of Goods Sold (50% of Sales) - Depreciation = EBIT Taxes (21%) = Unlevered Net Income + Depreciation + Changes to Working Capital - Capital Expenditures 30,000 30,000 30,000 20,000 20,000 20,000 4200 4200 4200 15,800 15,800 15,800 30,000 30,000 30,000 -5000 -5000 10,000 -90,000 The free cash flow for the last year of Epiphany's project is closest to: $35,000 $43,000. $38,000. $55,800