Epiphany Industries Is Considering a New Capital Budgeting Project That

Multiple Choice

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) $65,750
B) $59,175
C) $49,313
D) $52,600