The net present value (NPV) for Epiphany's Project is closest to: O A. $122,304 O B. $81,536 OC. $40,768 O D. $20,384

Extracted text: The net present value (NPV) for Epiphany's Project is closest to: O A. $122,304 O B. $81,536 OC. $40,768 O D. $20,384


Extracted text: 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: Yea 1 3 Sales (Revenues) Cost of Goods Sold (50% of Sales) 125,000 125,000 62,500 25,000 37,500 125,000 62,500 25,000 62,500 25,000 Depreciation = EBIT - Taxes (20%) = unlevered net income + Depreciation + changes to working capital - capital expenditures 37,500 37,500 7,500 7,500 7,500 30,000 25,000 30,000 25,000 30,000 25,000 - 5,000 - 5,000 10.000 - 90,000