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please fill in the following blanks in the second picture Epiphany Industries is considering a new capital budgeting project that will last for three years.

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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, has prepared the following incremental cash flow projections: Year Sales (Revenues) - Cost of Goods Sold (50% of Sales) - Depreciation = EBIT - Taxes (35%) = unlevered net income + Depreciation + changes to working capital - capital expenditures 1 100,000 50,000 30,000 20,000 7000 13,000 30,000 -5000 2 100,000 50,000 30,000 20,000 7000 13,000 30,000 -5000 3 100,000 50,000 30,000 20,000 7000 13,000 30,000 10,000 -90,000 4) Please fill in the following blanks: 0 1 100,000 2 100,000 3 100,000 Year Sales (Revenues) - Cost of Goods Sold (50% of Sales) - Depreciation = EBIT - Taxes (35%) = unlevered net income + Depreciation + changes to working capital - capital expenditures = Free Cash Flow 50,000 30,000 20,000 7000 13,000 30,000 -5000 50,000 30,000 20,000 7000 13,000 30,000 -5000 50,000 30,000 20,000 7000 13,000 30,000 10,000 -90,000 -90,000 38,000 38,000 53,000 ( ) ( ) ( ) 0.12 ( ) PV of FCF (FCF/(1+1) discount rate NPV = ( ) IRR = ( )

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