GENERAL INSTRUCTIONS: ENTER YOUR ANSWER WITHOUT THE $ SIGN AND COMMA, BUT FORMATTED IN DOLLARS ROUNDED TO THE NEAREST DOLLAR, for instance if you compute $77,342.6478 then ENTER 77343 AS YOUR ANSWER. DO NOT ROUND IN YOUR CALCULATION STEPS (use calculator memory functions) TO AVOID ROUNDING ERRORS. There is a little bit of tolerance built into accepting/rejecting your answer, but if you round in your intermediate calculations you may be too far off.

Metal XYZ Inc. is considering a new project involving a purchase of a new smelting machine. The machine can be purchased for $930,000, and it is expected to last 17 years and then be sold for $146,000. The company uses straight-line depreciation. Metal XYZ anticipates its annual operating revenue will increase by $994,000, and its annual operating expenses will increase by $258,000 as a result of acquiring the machine. Assuming the company is facing an effective tax rate of 35%, calculate the after-tax cash flow (CFAT) for year 3 of the project.