Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $1.4 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $105,000 after 3 years. The project requires an initial investment in net working capital of $150,000. The project is estimated to generate $1,200,000 in annual sales, with costs of $480,000. The tax rate is 34 percent and the required return on the project is 10 percent. (Do not round your intermediate calculations.)

a) What is the project's year 1 net cash flow?