Weston Clothing Company Is Considering Manufacturing a New Style of Shirt

Weston Clothing Company is considering manufacturing a new style of shirt, 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 new 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 Weston's 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.)

A) $3, 636
B) $3, 828
C) $4, 019
D) $4, 220
E) $4, 431