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Net present value? for? epiphany project

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Reference no: EM132719699

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 0 1 2 3 Sales? (Revenues) 100,000 100,000 100,000

-Cost of Goods Sold? (50% of? Sales) 50,000 50,000 50,000
-Capital Cost Allowance 13,500 22,950 16,065

=EBIT 36,500 27,050 33,935

-Taxes ?(35%) 12,775 9,468 11,877

=Unlevered net income 23,725 17,582 22,058

+Capital Cost Allowance 13,500 22,950 16,065

+Changes to working capital -5,000 -5,000 -10,000

-Capital Expenditures -90,000

The net present value? (NPV) for? Epiphany's Project is closest? to:

Reference no: EM132719699

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