Year 0 Revenues -Cost of Goods Sold - Depreciation =EBIT TAMARIOSO Year 1 450,000 - 160,000 - 100,000 190,000 Year 2 450,000 - 160,000 - 100,000 190,000 Year 3 450,000 160,000 100,000 190,000 AFAN - Taxes (35%) =Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures -66,500 123,500 100,000 - 25,000 - 66,500 123,500 100,000 - 25,000 - 66,500 123,500 100,000 - 25,000 - 300,000 =Unlevered net income +Depreciation - Additions to Net Working Capital - Capital Expenditures =Free Cash Flow 123,500 100,000 - 25,000 123,500 100,000 - 25,000 123,500 100,000 - 25,000 - 300,000 198,500 198,500 198,500 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. Visby learns that a competitor is thinking of offering similar services, thus reducing Visby's sates. By how much could sales fall before the net present value (NPV) was zero, given that the cost of capital is 12%, and that cost of goods sold is 45% of revenues? O A. by 28% OB. by 37% OC by 23% Dhy 46%