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

Question

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 ________.

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

Quizplus · Accepted Answer

A)
 11eaabab_c096_b14a_b90e_1b12b1f54c9c_TB5536_00 Decrease in working capital requirements represents increase in free cash flow.

Epiphany Industries Is Considering a New Capital Budgeting Project That