Yummy Foods is considering a product whose data are shown below.The equipment that would be used has a 3-year tax life, would be depreciated by the straight line method over the project's 3-year life, would have zero salvage value, and no new working capital would be required.

Revenues and other operating costs are expected to be constant over the project's 3-year life.

What is the project's NPV?

WACC10%

Net initial investment $65,000

Straight line depreciation rate 33.33%

Sales revenues $70,000

Operating costs excluding depreciation $30,000

Tax rate 35%