15. ABC Co. is considering a new project whose data are shown below. The equipment has a constant capital cost allowance (CCA) over its 3-year life with a zero salvage value. No new working capital will be required. Revenues and cash operating costs are expected to be constant over the projects 3-year life. However, this project would compete with other ABC products and would reduce their pre-tax annual cash flows. What is the projects NPV? Relevant discount rate 10% Pre-tax cash flow reduction in other products (cannibalization) $5,000 Investment cost $65,000 Annual CCA $21,665 Annual sales revenues $75,000 Annual cash operating costs $25,000 Corporate tax rate 35% ____ A) $25,269 B) $26,599 C) $27,929 D) $29,325 Hint: Cash flows are constant in years 1 to 3. The proposed CCA is for computational convenience although the actual CCA varies in years 1 to 3