QUESTION 38 Year 1 Year 2 Year 3 Revenues 500,000 500,000 500,000 - Cost of Goods Sold - 150,000 - 150,000 - 150,000 Depreciation -100.000 -100.000 -100.000 EBIT 250,000 250,000 250,000 Taxes (35%) -87.500 -87.500 -87.500 -Unlevered net income 162,500 162,500 162,500 Depreciation 100,000 100,000 100,000 Additions to Net Working Capital -20,000 -20,000 -20,000 Capital Expenditures -300.000 - Free Cash Flow -300,000 242,500 242,500 242,500 Visby Rides, a livery car company, is considering buying some new luxury cars. After extensive research, they come up with the above estimates of free cash flow from this project. If the cost of capital is 9%, what is the net present value (NPV) of this project? $313,839 $292,601 $324,946 $303,062