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

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Definitions:

Transcontinental Railroad

A contiguous network of railroad trackage that crosses a continental landmass with terminals at different seas or ocean borders.

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by increasing the price of imported goods.

Agricultural Inventions

Innovations and developments in the field of agriculture that improve efficiency, yield, or sustainability in food production.

Farmers

Individuals or entities engaged in the activity of agriculture, raising living organisms for food or raw materials.