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Temple Corp. is considering a new project whose data are shown below. The equipment would be used for three years with straight-line depreciation, and would

Temple Corp. is considering a new project whose data are shown below. The equipment would be used for three years with straight-line depreciation, 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 project's 3-year life. What is the project's NPV? (Hint: You need to first find CF0, CF1, CF2, and CF3. CF1-CF3 are the same number.)

Keep the - sign if it's a negative NPV number. Round to the whole dollar.

Risk-adjusted WACC

10.0%

Net investment cost (depreciable basis)

$65,000

Straight-line depr. rate

33.3333%

Sales revenues, each year

$67,500

Annual operating costs (excl. depr.)

$25,000

Tax rate

35.0%

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