A firm is considering leasing or buying a mower. The mower costs $1000 and can be depreciated according to the MACRS 3 year depreciation schedule (33%; 45%; 15%; and 7%). A maintenance contract will be purchased for $70 per year payable at the start of each year for 4 years. At the end of the fourth year the mower is expected to have a value of $300.

The firm is taxed at 30% What is the operating cash flow associated with the purchase of this asset at the end of the first year?