Qrw corp. needs to replace an old lathe with a new more efficient model, the old lathe was purchased for $50,000 nine years ago and has a current book value of $5,000. (The old machine is being depreciated on a straight-line basis over a 10 year useful life.) The new machine cost $100,000. It will cost the company 10,000 to get the new lathe to the factory and get it installed. The old machine will be sold as scrap metal for $2,000 . The new machine is also being depreciated on the straight line basis over 10 years. Sales are expected to increase by 8,000 per year while operating expenses are expected to decrease by 12,000 per year. QRW's marginal tax rate is 40% . Additional working capital of $3,000 is required to maintain the new machine and higher sales level. The new lathe is expected to be sold for $5,000 at the end of the project's ten year life. What is the incremental free cash flow during year one of the project ? $11,400 $15,200 $12,800 $14,400