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: A Year 0 1 2 3 Sales (Revenues) 125,000 125,000 125,000 Cost of Goods Sold (50% of Sales) 62,500 62,500 62,500 Depreciation 30,000 30,000 30,000 - EBIT 32,500 32,500 32,500 Taxes (35%) 11,375 11,375 11,375 O A. $48,900 OB. $61,125 OC. $45,844 OD. $55,013 te Click to select your answer ? WH Terms of Use | Privacy Policy Domisine Canada LOSLUI GUOUS SOIU (5470 Sales) Depreciation = EBIT Taxes (35%) = unlevered net income + Depreciation + changes to working capital capital expenditures 02,50V 30,000 32,500 11,375 21,125 30,000 -5,000 02 500 30,000 32,500 11,375 21,125 30.000 - 5,000 OZ,DUU 30,000 32,500 11,375 21.125 30,000 10,000 - 90,000 The free cash flow for the last year of Epiphany's project is closest to O A. $48,900 OB. $61,125 OC. $45,844 OD. $55.013 te Click to select your answer HY Terms of Use | Privacy Policy | Derman canada