ABC Corp is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life at 33 1/3% per year. The economic life of the project is four years, and the equipment would be estimated to sell at $20,000 at the end of the four years. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 4-year life. What is the project's NPV?

Risk-adjusted WACC

16.0%

Net investment cost (depreciable basis)

$90,000

Straight-line deprec. rate

33.3333%

Sales revenues, each year

$65,000

Operating costs (excl. deprec.), each year

$25,000

Tax rate

35.0%

$8,651

$9,924

$11,881

$13,514

$19,325