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Temple Corp is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, would be

Temple Corp is considering a new project whose data are shown below. The equipment that 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 life. 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?

Risk-adjusted WACC 10.0%
Net investment cost (depreciable basis) $65,000
Straight-line depr. rate 33.333%
Sales revenues, each year $71,000
Annual operating costs (excl. depr) $25,000
Tax rate 35.0%

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$28,215

$25,393

$25,958

$23,136

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