Industries is considering a new capital budgeting project that will last for three years. on using a cost of capital of 12% to evaluate this project. Based on extensive research it the following incremental cash flow projects 150,000 $150,000 S150,000 75,000 75,000 75,000 20,000 20,000 20,000 55,000 5,000 55,000 19,250 19.250 19250 35,750 35,75035.750 2000020,000 20,000 CostaGoodsSold (500% of Sales) Depreciation EBIT " Taxes (35%) unlevered net income Depreciation -) increase/(decrease) in working ital 5,000 5,000 -10,000 capital expenditures $90,000 The free cash flow for the last year of Epiphany's project is closest to A) $65,750 B) $59,175 C) $49,313 D) $52,600 17) Year0 Year 1 Year2 Year 3 Year4 Years MACRS Depreciation Rate 2000% 3200% 1152% 1152% 576% 1920% A bakery invests $40,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $21,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 40%? A) $11,520 B) $9480 C) $3792 D) $17,208 18) Year Free Cash Flow $32 million $29 million $30 million $26 million $22 million General Industries is expected to generate the above free cash flows over the next five years, after which free cash flows are expected to grow at a rate of 5% per year. If the weighted average cost of capital is 9% and General Industries has cash of $15 million, debt of $45 million, and 80 million shares outstanding what is General Industries expected current share price? A) $7.78 B) $8.17 C)$9.34 D) $11.67