The food truck & equipment will cost Pappy $50,000. He will be able to depreciate the value of the truck & equipment on a straight-line basis over 10-years. Pappy expects to use it for 4 years and then sell the Food Truck for $30,000. Pappy does not expect the food truck to impact sales at his other stores. Pappy expect to sell 1,500 pies in the first year growing at a 5% annual rate. Pies sell for $20 on average. He does not expect to raise prices over the next 4 years. Variable costs tend to average 40% of sales. Fixed costs are expected to be $5,000 a year, growing at a 3% rate. Depreciation is not included in either Variable or Fixed Costs and needs to be calculated separately. Net working capital to support the truck is expected to be 5% of sales, and will be all liquidated at the end of the 4th year. Pappy pays 20% in corporate income tax. Customers are charged any sales taxes and are not needed in the calculations. Pappy estimates the cost of capital for this project should be 12%.

Using these assumptions calculate the projects NPV,