the free cash flow from the first year of Epiphany's project is closest to:

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 projoct. Based on exlensive research, it has propared the following incremental cash flow projects: \begin{tabular}{lcccc} \hline Year & 0 & 1 & 2 & 3 \\ \hline Sales (Revenues) & & 175,000 & 175,000 & 175,000 \\ - Cost of Goods Sold (50\%) of Sales) & & 87,500 & 87,500 & 87,500 \\ - Depreciation & & 25,000 & 25,000 & 25,000 \\ - EBIT & & 62,500 & 62,500 & 62,500 \\ - Taxes (20\%) & & 12,500 & 12,500 & 12,500 \\ - unlevered not income & & 50,000 & 50,000 & 50,000 \\ + Depreciabion & & -5000 & 25,000 & 25,000 \\ + changes to working capital & 90,000 & & -5000 & -5000 \\ - caoilal expendiures & & & \end{tabular} A. $70,000 B. $98.000 C. 584,000 D. 552.500