You are asked to evaluate a project proposal for Edmonton Plaza. The equipment that would be used would have aconstantannual capital cost allowance over the project's 3-year life and a zero salvage value. This project would require some additional working capital that would be recovered at the end of the project's life. Revenues and cash operating costs are expected to be constant over the project's 3-year life. What is the project's NPV?

WACC

10.0%

Net investment in fixed assets (basis)

$65,000

Required new working capital

$10,000

Annual capital cost allowance

$21,665

Sales revenues, each year

$70,000

Cash operating costs, each year

$25,000

Tax rate

35.0%

a $24,112

b $25,318

c $26,584

d $27,913