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Epiphany Industries is considering a new capital budgeting project that will last for three years....

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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 projections: 0 Year Sales (Revenues in S) Cost of Goods Sold (50% of Sales) Depreciation EBIT Taxes (21%) Unlevered Net Income Depreciation Changes to Working Capital Capital Expenditures 100,000 50,000 30,000 20,000 4200 15,800 30,000 5000 2. 100,000 50,000 30,000 20,000 4200 15,800 30,000 5000 3 100,000 50,000 30,000 20,000 4200 15,800 30,000 -10,000 -90,000 Epiphany would like to know how sensitive the project's NPV is to changes in the discount rate. How much can the discount rate vary before the NPV reaches zero

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