An Enterprises is planning to open a new distribution center in Reading, Pennsylvania. Robbins will lease the distribution center from Tuang Partners, LLC, at an annual, end-of-year lease rate of $90,000 per year. (Lease payments are tax deductible cash operating expenses.) The company expects to close the facility at the end of 10 years. The cost of the equipment for upfitting this warehouse is expected to be $1.0 million. This cost will be depreciated for tax purposes using 7-year MACRS depreciation rates. The salvage value of the equipment is estimated to be $250,000 at the end of year 10. Although this new facility is not expected to increase the companys revenues, operating cost savings associated this facility are expected to be $300,000/year for the first 5 years, $400,000/year for the next 3 years, and $150,000 per year thereafter. There will be net working capital investments required totaling $100,000 in year 1 and $25,000 in year 2. These working capital investments are expected to be recovered at the end of 10 years. The companys marginal tax rate is 40 percent.

Compute the net cash flow of the project in year number 10 only.