ABC Company is considering a new project. The required new equipment will cost $74,385 and has a 3-year MACRS life, with the allowed depreciation rates of 33.33%, 44.45%,14.81%, and 7.41% for Years 1 through 4. The new project is expected to generate constant annual sales of $80,068 and operating costs (excluding depreciation) equal to 40% of annual sales. It also expects an increase in net operating working capital equal to 13.6% of annual sales for each of the next three years. The company's tax rate is 35%. What is the net cash flow in YEAR 1 of this new project? Do not discount the cash flows to year 0 . Round your answer to the nearest dollar, but do not include $ in your answer, e.g., xx,xxx. (Hint: Use the Net (Operating) Cash Flow formula.) Suppose you have just borrowed $54,961 at an annual interest of 8.4% and must repay the loan in equal installments at the end of each of the next 5 years. By how much would you reduce the amount you owe (that is, principal) at the end of the first year? (Hint: Compute annual loan payment first and then the loan amortization schedule for the first year.) $9,292.62 $9,294.04 $9,291.50 $9,290.40 $9,293.48