Use the Information for the Question(s)below

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