15. TexMex Products is considering a new salsa whose data are shown below. The equipment that would be used would be depreciated by the straight-line method over its 3-year life, would have zero salvage value, and no new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. However, this project would compete with other TexMex products and would reduce their pre-tax annual cash flows. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) WACC Pre-tax cash flow reduction in other products (cannibalization) Investment cost (depr'ble basis) Straight-line depr'n rate Sales revenues, each year Annual operating costs, ex. depr'n 10.0% $5,000 $65,000 33.333% $75,000 $25,000 35.0% Tax rate