4. Knorr Company is planning to launch a new salsa whose data are shown below. It will require installation of new machinery that will be depreciated by the straight-line method over its 3- year life and with salvage value of zero, and no change in net operating 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 Knorr products and which will reduce their pre-tax annual cash flows. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) 12.0% $5,000 $80,000 WACC Pre-tax cash flow reduction for other products (cannibalization) Investment cost (depreciable basis) Straight-line depreciation rate Annual sales revenues Annual operating costs (excl. depreciation) Tax rate 33.333% $67,500 $25,000 35.0%