Use the Information for the Question(s)below

question 21

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 first year of Epiphany's project is closest to:

• A)$43,000
• B)$25,000
• C)$38,000
• D)$45,000