Falcon Rubber is considering replacing its molding machine with a newer, more efficient one. The old machine has a book value of $700,000 with a remaining useful life of 5 years. It has been depreciated on a straight-line basis. This machine would be worn out and worthless in 5 years, but the company can sell it now for $265,000. The new machine has a purchase price of $1,180,000 and an additional installation cost of $5,000. At the time of replacement, the company will need an increase in net working capital of $12,000. It has an estimated MACRS class life of 5 years, and an estimated salvage value of $105,000. The applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The new machine is expected to generate an annual savings of $255,000 in operating costs. The company's marginal tax rate is 35% and the project cost of capital is 14%. What is the initial net cash flow in YEAR O if the new machine is purchased to replace the old one? Round your answer to the nearest dollar