1. TBL Inc. recently hired you as a consultant to help with its capital budgeting process. The company is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? 10.0% Risk-adjusted cost of capital Net investment cost (depreciable basis) Straight-line deprec. rate $60,000 33.3333% Sales revenues, each year Operating costs (excl. deprec.), each year Tax rate $65,500 $25,000 21.0%