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Cookie Cutter Corp. is considering a new project whose data are shown below. The equipment that would be used has a 5-year tax life, would

Cookie Cutter Corp. is considering a new project whose data are shown below. The equipment that would be used has a 5-year tax life, would be depreciated by the straight-line method over its 5-year life, and would have a zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's 5-year life. What is the project's NPV? Do not round the intermediate calculations and round the final answer to the second decimal place.

  • Risk-adjusted WACC = 8.6%
  • Net investment cost (depreciable basis) = $140,000
  • Straight-line depreciation rate = 20.00% per year
  • Cash Sales revenues, each year = $71,000
  • Annual cash operating costs (excluding depreciation) = $25,000
  • Tax rate = 22.0%

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