The free cash flow for the first year of Epiphany's project is closest to ________
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
- Depreciation 30,000 30,000 30,000
= EBIT 20,000 20,000 20,000
- Taxes (35%) 7,000 7,000 7,000
= unlevered net income 13,000 13,000 13,000
+ Depreciation 30,000 30,000 30,000
+/(-) increase/(decrease) in working capital 5,000 5,000 5,000
- capital expenditures -90,000
A) $45,600
B) $28,500
C) $38,000
D) $53,200
Answer: C
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When shopping for a car you notice a significant price gap between domestic and imported cars, with the imported cars being much more expensive. This could be the result of
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Answer the following statements true (T) or false (F)
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In the historic case of Hamer v. Sidway, the nephew
a. lost, as the Court found there was no consideration. b. lost, as the uncle was dead. c. won, as the Court found there was consideration. d. won, as there was a completed gift.