Use the Information for the Question(s)below

question 58

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 first year of Epiphany's project is closest to:

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