Fairfax Pizza is considering buying a new oven. The new oven would be purchased today for 18,600 dollars. It would be depreciated straight-line to 1,200 dollars over 2 years. In 2 years, the oven would be sold for an after-tax cash flow of 1,700 dollars. Without the new oven, costs are expected to be 11,300 dollars in 1 year and 18,900 in 2 years. With the new oven, costs are expected to be -1,800 dollars in 1 year and 12,400 in 2 years. If the tax rate is 50 percent and the cost of capital is 11.43 percent, what is the net present value of the new oven project?

Fairfax Pizza is considering buying a new oven. The new oven would be purchased today for 18,600 dollars. It would be depreciated straight-line to 1,200 dollars over 2 years. In 2 years, the oven would be sold for an after-tax cash flow of 1,700 dollars. Without the new oven, costs are expected to be 11,300 dollars in 1 year and 18.900 in 2 years. With the new oven, costs are expected to be -1,800 dollars in 1 year and 12,400 in 2 years. If the tax rate is 50 percent and the cost of capital is 11.43 percent, what is the net present value of the new oven project? Number