Geldra Inc. is considering an opportunity to manufacture a new style of skateboard, whose data is shown below. The equipment to be used would be depreciated over its 3-year life using the straight-line method. It would have a zero salvage value, and no new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. However, this project would compete with other products and would reduce their pre-tax annual cash flows. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)

Cost of capital 8%

Pre-tax cash flow reduction for other products $5,000

Investment cost (dep. Basis) $72,000

Straight line depr. Rate 33.33%

Sales revenues per year x 3 years $67,500

Annual operating costs ( exclude. Depr.) $25,000

Tax rate 35%