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Which of the following statements about venture capital funding is not correct?

A) Exiting an investment can occur through an initial public offering or by merger or acquisition. B) Venture capital investing is highly risky. C) Venture capital firms may focus on a limited geographic area or on specific industries to facilitate monitoring their investments. D) Firms hope to exit a start-up firm in 3-5 years.

The free cash flow for the last 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) $150,000 $150,000 $150,000 - Cost of Goods Sold (50% of Sales) 75,000 75,000 75,000 - Depreciation 20,000 20,000 20,000 = EBIT 55,000 55,000 55,000 - Taxes (35%) 19,250 19,250 19,250 = unlevered net income 35,750 35,750 35,750 + Depreciation 20,000 20,000 20,000 +/(-) increase/(decrease) in working capital 5,000 5,000 -10,000 - capital expenditures -$90,000 A) $65,750 B) $59,175 C) $49,313 D) $52,600