CR Er 7) (15 pts) Jumpstart, 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? Risk-adjusted WACC 12.0% Net investment cost (depreciable basis) $85,000 Straight-line deprec. rate Sales revenues, each year $95,500 Operating costs (excl. deprec.), each year $35,000 Tax rate WACC 12.0% Years 33.33% 40.0% 1 3