You are considering the following project. What is the NPV of the project?

Project life: 3 years

Equipment:

Cost:$20,000

Economic life: 3 years

Salvage value: $4,000

Initial investment in net working capital:$2,000

Revenue:$13,000 in year 1, with a nominal growth rate of 5% per year

Fixed cost: $3,000 in year 1

Variable cost: 30% of revenue

Corporate tax rate (T):40%

WACC for the project:10%

This project does not create incidental effect.