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 project's NPV$?$

WACC $10\mathrm{.}0\%$

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

Investment cost $($depreciable basis$)$ $$80,000$

Straight$-$line deprec. rate $33\mathrm{.}333\%$

Sales revenues, each year for $3$ years $$67,500$

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

Tax rate $35\mathrm{.}0\%$