1 pts Question 15 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 Tex Mex products and would reduce their pre-tax annual cash flows. What is the project's NPV if the project's cost of capital is 11%? (Hint: Cash flows are constant in Years 1-3.) Pre-tax cash flow reduction for other products (cannibalization) $5,000 Investment cost (depreciable basis) Straight-line deprec. $80,000 rate Sales revenues, each year for years 33.333% Investment cost (depreciable basis) $80,000 Straight-line deprec. rate 33.333% Sales revenues, each year for 3 years $67,500 Annual operating costs (excl. deprec.) $25,000 Tax rate 35.0% 5962 $2,373 O $2,016 O $1,662 O $1,311