Problem $12-10$ Change in NWC $($LG$12-3)$

You are evaluating a project for The Tiff$-$any golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Tiffany to be $$440$ per unit and sales volume to be $1,000$ units in year $1$;$1,500$ units in year $2$ ; and $1,325$ units in year $3.$ The project has a $3-$year life. Variable costs amount to $$245$ per unit and fixed costs are $$100,000$ per year. The project requires an initial investment of $$177,000$ in assets, which will be depreciated straight$-$line to zero over the $3-$year project life. The actual market value of these assets at the end of year $3$ is expected to be $$39,000.$ NWC requirements at the beginning of each year will be approximately $25$ percent of the projected sales during the coming year. The tax rate is $35$ percent and the required return on the project is $11$ percent.

What change in NWC occurs at the end of year $1?($Enter a decrease as a negative amount using a minus sign.$)$