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Giant Corp. is considering a project that requires a $1,274 initial cost for a new machine that will be depreciated straight line to a salvage

Giant Corp. is considering a project that requires a $1,274 initial cost for a new machine that will be depreciated straight line to a salvage value of 0 on a 5-year schedule. The project will require a one-time increase in the level of net working capital of $349. The project will generate an additional $1,846 in revenues and $718 in operating expenses each year. The project will end at the end of year 2, at which time the machinery is expected to be sold for $715. Giant's tax rate is 22. In a discounted cash flow analysis of this project, what would be the projected Year 0 free cash flow?

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