Delta Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, after which it will be worthless, and it will be depreciated by the straight line method over 3 years. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's operating cash flow during Year 1?

Equipment cost (depreciable basis) .... $75,000

Straight line depreciation rate ....... 33.33%

Sales ...............$60,000

Operating costs excl. depreciation ..... $25,000

Tax rate ..............35%