Use the Information for the Question(s)below

question 22

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 projects:

-The free cash flow for the last year of Epiphany's project is closest to:

• A)$47 750
• B)$62 750
• C)$39 000
• D)$45 000

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Definitions:

DVC

Digital Video Compression, a method for reducing the size of digital video files.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured by the rise in the country's gross domestic product (GDP).

Industrially Advanced Countries

High-income countries such as the United States, Canada, Japan, and the nations of western Europe that have highly developed market economies based on large stocks of technologically advanced capital goods and skilled labor forces.

IACs

An abbreviation that could stand for various entities or concepts; without additional context, providing a specific definition is not feasible.