Alberta Pasta is considering producing a new type of pasta. The required equipment has a constant capital cost allowance over its 3-year life with a zero salvage value. No new working capital would 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 Alberta Pasta products and would reduce the companys pre-tax annual cash flows. What is the projects NPV? WACC 10.0% Pre-tax cash flow reduction in other products (cannibalization) $15,000 Investment cost $65,000 Annual capital cost of allowance (assume constant capital cost allowance for ease of computation) $31,000 Annual sales revenues $80,000 Annual cash operating costs $25,000 Tax rate 25.0% a) $93,879 b) $37,750 c) $29,325 d) $28,879