Texmex Food Company is considering a new salsa whose data are shown below. The equipment to be used would be depreciated by the straight line method over its 3-year life and would have a 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 projects NPV? (Hint: Cash flows are cosntant years 1-3)

WAAC = 10%

Pre tax cash flow reduction for other products(cannibalization) = $-5,000

Investment costs(depreciable basis) = $80,000

Straight line depr rate = 33.333%

Sales revenues, each for 3 years = $61,000

Annual operating costs (excl deprec) = $-25,000

Tax rate = 35.0%

a.-$6,679 b.-$6,612 c.-$7,681 d.-$6,545 e.-$8,349