Use the Information for the Question(s)below

question 5

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)$53,000
• B)$38,000
• C)$35,000
• D)$43,000

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Definitions:

Transactional Event

An exchange or interaction between parties that usually involves a change in status or condition, often used in reference to business or economic activities.

Restricted

Limited or confined within certain parameters, boundaries, or conditions, often imposed by external factors or regulations.

Coercive Power

The ability to compel or force someone to act in a certain way through threats, punishments, or control measures.

Legitimate Power

A form of authority that stems from an individual's role or position within an organization, allowing them to influence others based on their formal standing.