roduct

Consider the following facts about a company's new product: Anticipated incremental annual revenues Anticipated incremental annual costs Research and development spent previous year Purchase of equipment to produce product Shipping and installation of production equipment Estimated resale value of equipment in three years Expected useful life MACRS classification Marginal tax rate Project cost of capital $300,000 $100,000 $200,000 $47,523 $5,000 $25,000 3 years 5-year 22% 14% What is the net cash flow for the first year of operations for this product? Report your answer to the nearest whole dollar.