Use the Information for the Question(s)below

question 44

Multiple Choice

Use the information for the question(s) below.
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 projections:
-The free cash flow for the last year of Epiphany's project is closest to:

• A)$55,800.
• B)$38,000.
• C)$35,000.
• D)$43,000.

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Definitions:

Balance Sheet

A report on finance that outlines a firm's assets, debts, and owners' equity at a certain time, offering a framework for determining returns and analyzing its capital composition.

Accounts Payable

The amount a company owes to suppliers for items or services purchased on credit.

Liabilities

Obligations in terms of finances that an organization must fulfill to external parties, involving the exchange of economic advantages like funds, goods, or assistance over time.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.