Mike Mulligan Excavation Inc. is considering the purchase of a new Caterpillar 345DL Hydraulic Excavator. The machine will be used for two years to excavate building foundations. The cost of the machine is $325,000 and it can be sold for $100,000 at the end of two years. Mike estimates that, with the new machine, he can dig 35 foundations per year with an average invoice price of $11,000. Mike estimates that his incremental costs will be $150,000 per year (for wages, fuel & maintenance). The company's cost of capital is 9% and the marginal tax rate is 35%. What are the operating cash flows in Year 1? Assume that the cost of buying the new excavator is tax deductible at the end of the first year. (Round to the nearest dollar.)