Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what's the closest answer please Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a

image text in transcribed

what's the closest answer please

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 Sales (Revenues) - Cost of Goods Sold (50% of Sales) - Depreciation = EBIT - Taxes (35%) = unlevered net income + Depreciation + changes to working capital - capital expenditures 1 200.000 100,000 20,000 80,000 28,000 52,000 20,000 -5,000 2 200.000 100,000 20,000 80,000 28,000 52,000 20,000 -5.000 3 200,000 100,000 20,000 80,000 28,000 52,000 20,000 10,000 - 90.000 O A. $40.800 O B. $163,198 O c. $81,599 OD. $244,797 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 Sales (Revenues) - Cost of Goods Sold (50% of Sales) - Depreciation = EBIT - Taxes (35%) = unlevered net income + Depreciation + changes to working capital - capital expenditures 1 200.000 100,000 20,000 80,000 28,000 52,000 20,000 -5,000 2 200.000 100,000 20,000 80,000 28,000 52,000 20,000 -5.000 3 200,000 100,000 20,000 80,000 28,000 52,000 20,000 10,000 - 90.000 O A. $40.800 O B. $163,198 O c. $81,599 OD. $244,797

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Managers

Authors: E. Martinez Abascal

1st Edition

0077140079, 9780077140076

More Books

Students also viewed these Finance questions

Question

Determine the of ????2 when (a) ???? = 0.83. (b) ???? = .77.

Answered: 1 week ago

Question

Whether training would be needed, and what methods would be used.

Answered: 1 week ago

Question

What should be the purpose of performance management and appraisal?

Answered: 1 week ago

Question

The issue of staff sensitivity to feedback

Answered: 1 week ago