Steamboat Springs Furniture, Inc., is considering purchasing a new finishing lathe that costs $55,000. The lathe will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will tatal $50,000 per year, and other cash expenses will be $10,000 per year. The machine is expected to sell for $10,000 at the end of its five-year life and will be depreciated on a straight-line basis over five years to zero. Steamboat Springs' marginal tax rate is 34 percent, and its cost of capital is 12 percent.

What is the project cash flow for the first year of the project?