s1.charset='UTF-8'; s1.setAttribute('crossorigin','*'); s0.parentNode.insertBefore(s1,s0); })(); Problem #1: TexMex Food Company is considering a new salsa whose data are shown below. T | blisspaper

Problem #1: 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.)