Party Place is considering a new investment whose data are shown below. The equipment that would be used would have a constant annual capital cost allowance over the project's 3-year life and a zero salvage value. This project would require some additional working capital that would be recovered at the end of the project's life. Revenues and cash operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1 to 3. CCA is modified to smooth out the calculations.) 
Definitions:
Recurring Expense
An ongoing financial cost that repeats at regular intervals, such as monthly or yearly.
Variable Expense
Costs or expenses that change in proportion to business activity.
Electric Bill
A monthly statement charging an individual or household for the consumption of electricity provided by a utility company.
Cappuccinos
A coffee drink made with equal parts espresso, steamed milk, and milk foam.
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