Given only the following information for year 2 of capital expenditure budget, compute the total year 2 relevant after-tax cash flow for capital budgeting Net Present Value purposes. Enter whole dollars only with no commas or currency sign.

Year 2

Sales........................................................................$1,900,000

Less Cost of sales.........................................................-750,000

Gross profit................................................................ 800,000

Less Selling general and administrative expense................-390,000

Less Depreciation Expense...............................................-67,500

Operating income........................................................392,500

Less Interest expense......................................................-55,000

Income before taxes....................................................337,500

Less Taxes (21%)........................................................... -70,875

Net income after taxes ..............................................$266,625

In addition to the amounts listed above:

a) A phase one environmental study for the project was completed one year ago at a cost of $5,500, which has not yet been paid but, per the agreement with the engineering firm, will be due at the end of year 2 if the project goes forward.

b) $300,000 per year of annual sales of another product with a 40 percent gross profit margin will be lost if this project goes forward.

c) Rather than moving ahead with the project, the existing building planned to be used for the project can be rented out to another firm for $85,000 per year.

d) 3 years ago, $9,500 was spent on a favorable marketing feasibility study.