9. A firm is considering a project with the following information:

• Project will require purchase of a machine for $106,165.00 that is MACRS depreciable over a five-year schedule. (no depreciation until end of year 1).
• Project will require immediate non-depreciable expenses of $25,258.00 TODAY (year 0).
• Project will have the following projected balance sheet values of NWC:

YEAR	0	1	2
NWC Level	$4,000	9.00% of sales	8.00% of sales

• Sales for the project will be $48,744.00 per year, with all other expenses (excluding depreciation) at 49.00% of sales.
• The tax rate for the firm is 35.00%, while the cost of capital is 14.00%

*assume project goes beyond two years

What is the projects cash flow for year 2?