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 0 1 2 3 Sales (Revenues) 200,000 200.000 200,000 - Cost of Goods Sold (50% of Sales) 100,000 100,000 100,000 - Depreciation 25,000 25,000 25,000 = EBIT 75,000 75,000 75,000 Taxes (20%) 15,000 15,000 15,000 unlevered net income 60,000 60.000 60,000 + Depreciation 25,000 25,000 25,000 +/-) increase/(decrease) in working capital 5,000 5,000 5,000 capital expenditures -90,000 The free cash flow for the first year of Epiphany's project is closest to OA) $60,000 OB) $96,000 C) $112.000 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 0 1 2 3 Sales (Revenues) 200,000 200.000 200,000 - Cost of Goods Sold (50% of Sales) 100,000 100,000 100,000 - Depreciation 25,000 25,000 25,000 = EBIT 75,000 75,000 75,000 Taxes (20%) 15,000 15,000 15,000 unlevered net income 60,000 60.000 60,000 + Depreciation 25,000 25,000 25,000 +/-) increase/(decrease) in working capital 5,000 5,000 5,000 capital expenditures -90,000 The free cash flow for the first year of Epiphany's project is closest to OA) $60,000 OB) $96,000 C) $112.000