Dramatic Crop. Is considering a new project whose data are shown below. The equipment 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 change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the projects 3 year life. What is the project NPV?

Risk adjusted WACC 10%

net investment cost (depreciation basis). $65000

Straight line depreciation rate. 33.3333%

sales revenues , each year. $65500

annual operating cost (excl. depreciation). $25000

tax rate. 35%