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Fairfax Pizza is considering buying a new oven. The new oven would be purchased today for 17,000 dollars. It would be depreciated straight-line to 1,600

Fairfax Pizza is considering buying a new oven. The new oven would be purchased today for 17,000 dollars. It would be depreciated straight-line to 1,600 dollars over 2 years. In 2 years, the oven would be sold for an after-tax cash flow of 2,100 dollars. Without the new oven, costs are expected to be 11,500 dollars in 1 year and 17,500 in 2 years. With the new oven, costs are expected to be 300 dollars in 1 year and 14,600 in 2 years. If the tax rate is 50 percent and the cost of capital is 11.34 percent, what is the net present value of the new oven project?

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