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

$68,000

Annual operating costs (excl. depr.)

-$25,000

Tax rate

35.0%

Group of answer choices

$4,636

$3,940

$5,192

$4,358

$3,570