Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below.

Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes, if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project s three-year life, after which it would be worth nothing, and thus it would have a zero salvage value. No new working capital would be required, and revenues and other operating costs would be constant over the project s three-year life. What is the project s NPV?(Hint: Cash flows are constant in years 1-3.) WACC 10.0%Opportunity cost 100,000 Net equipment cost (depreciable basis) 65,000Straight-line deprec. rate for equipment 33.333%Sales revenues, each year 123,000Operating costs (excl. deprec.), each year 25,000Tax rate