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: Year Sales (Revenues) Cost of Goods Sold (50% of Sales) - Depreciation |- EBIT Taxes (20%) 0 B) $338,469. 1 2 3 200,000 200,000 200,000 100,000 100,000 100,000 25,000 25,000 25,000 75,000 75,000 75,000 15,000 15,000 15,000 60,000 60,000 60,000 25,000 25,000 25,000 = unlevered net income + Depreciation +(-) increase/(decrease) in working capital capital expenditures -90,000 The net present value (NPV) for Epiphany's Project is closest to OA) $225,646 5,000 5,000 -10,000
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 net present value (NPV) for Epiphany's Project is closest to A) $225,646 B) $338,469 
