Swindler Ltd has completed a feasibility study costing $18,244 to determine if there is any benefit in purchasing a new asset. The machine will cost $378,340 and an additional $11,277 will need to be spent to have the machine in an operational state. Before the machine can be used staff must be trained at a further cost of $7,308.

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 $40,879 and additional stock of $70,421 will be needed. Wages will change from $85,000 to $55,041 and Fixed Costs will remain at $55,773.

The new machine is expected to produce sales of $1,874,920 in the first year and will grow by 13% each year of the project. Material costs will be 25% 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.

Assume the Australian Company tax Rate applies.