TexMex Food Company is considering a new salsa whose data are shown below. The new equipment costs $80,000 and would be depreciated by the straight-line to 0 method over its 3-year life and would have a zero salvage value. Annual revenues of $64,000 and operating costs of $25,000 are expected to be constant over the project's 3-year life. What is the project's NPV if the required rate of return is 10% and the tax rate is 35%?

6252

5752

6127

4814

6940