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: Year Sales (Revenues) 1 2 3 200,000 200,000 200,000 - Cost of Goods Sold (50% of Sales) Depreciation -EBIT Taxes (20%) 100,000 30,000 100,000 100,000 30,000 30,000 70,000 70,000 70,000 14,000 14,000 14,000 unlevered net income 56,000 56,000 56,000 + Depreciation 30,000 30,000 30,000 + changes to working capital -5000 -5000 - 5000 -capital expenditures -90,000 The free cash flow for the first year of Epiphany's project is closest to: