Swindler Ltd has completed a feasibility study costing $16,466 to determine if there is any benefit in purchasing a new asset.The machine will cost $380,466 and an additional $13,794 will need to be spent to have the machine in operational state.Before the machine can be used staff must be trained at a further cost of $6,586.

The project is expected to last for 5 years and the Taxation Office has confirmed this.At the end of the project the machine will be fully depreciated.

Initial advertising costs are expected to $38,553 and additional stock of $66,078 will be needed.Wages will change from $85,000 to $48,390 and Fixed Costs will remain at $31,430.

The new machine is expected to produce sales of $1,007,264 in the first year and will grow by 13% each year of the project.Material costs will be 23% of sales in each year.

You are required to calculate the net cash flow (round to the nearest dollar and DO NOT include $ sign) that would appear in Year 1 of a Capital Budget.