Question 14 1 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) 150,000 | 150,000 | 150,000 Cost of Goods Sold (50% of Sales) 75,000 75,000 75,000 Depreciation 25,000 25,000 25,000 EBIT 50,000 50,000 50,000 Taxes (35%) 17,500 17,500 17,500 unlevered net income 32,500 32,500 32,500 Depreciation 25,000 25,000 25,000 +(-) increase/(decrease) in working capital 5,000 5,000 - 10,000 capital expenditures -90,000 The net present value (NPV) for Epiphany's Project is closest to H. $23,387 $140,319 $46,773 $93,546