Denver Auto Wash is contemplating the purchase of a new high-speed washer to replace the existing washer. The existing washer was purchased two years ago at an installed cost of $120,000; it was being depreciated under MACRS using 5-year recovery period. The existing washer is expected to have a usable life of five more years. The new washer costs $210,000 and requires $10,000 in installation costs; it has a 5-year usable life and would be depreciated under MACRS using 5-year recovery period. The existing washer can currently be sold for $140,000 without incurring any removal or cleanup costs. To support the increased business resulting from the purchase of the new washer, accounts receivable would increase by $80,000, inventories by $60,000, and accounts payable by $116,000, and these changes are recouped at the end of the project. At the end of five years, the existing washer is expected to have a market value of zero; the new washer would be sold to net $58,000 after removal and cleanup costs and before taxes. The firm pays taxes at a rate of 40% on both ordinary income and capital gains.

MACRS 5-year recovery schedule

Year	1	2	3	4	5	6
Percentage	20%	32	19	12	12	5

The estimated profits before depreciation and taxes over the five years for both the new and existing washer are shown as:

	profits before depreciation	and taxes
Year	New washer	Existing washer
1	$ 86,000	$ 52,000
2	86,000	48,000
3	86,000	44,000
4	86,000	40,000
5	86,000	36,000

What is the second year incremental operating cash flow of this project?