TexMex Food Company is considering a new salsa whose data are shown below. The equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero salvage value, and 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. However, this project would compete with other TexMex 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.) Do not round the intermediate calculations and round the final answer to the nearest whole number.

WACC	10.0%
Pre-tax cash flow reduction for other products (cannibalization)	-$5,000
Investment cost (depreciable basis)	$80,000
Straight-line depr. rate	33.333%
Annual sales revenues	$66,000
Annual operating costs (excl. depr.)	-$25,000
Tax rate	35.0%

Group of answer choices

a. $ 1,136

b. $ 1,207

c. $ 1,613

d. $ 1,571

e. $ 1,403