Tex-Mex 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 new working capital would be required. Revenues and other operating costs are expected to be constant over the projects 3-year life. However, this project would compete with other Tex-Mex products and would reduce their pre-tax annual cash flows. What is the projects NPV? (Hint: Cash flows are constant in Years 1-3.) Relevant data is below.

WACC	10%
Investment Cost (depreciable basis)	$80,000
Pre-Tax Reduction for Other Products (Cannibalization)	$5,000
Straight Line Depreciation	33.333%
Depreciation Per Year	$26,667
Sales Revenue	$67,500
Annual Operating Costs Excluding Depreciation	$25,000
Tax Rate	35%