Swindler Ltd has completed a feasibility study costing $18,427 to determine if there is any benefit in purchasing a new asset. The machine will cost $299,224 and an additional $11,588 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 $9,129.

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 $12,711 and additional stock of $59,292 will be needed. Wages will change from $85,000 to $46,328 and Fixed Costs will remain at $33,069.

The new machine is expected to produce sales of $1,251,374 in the first year and will grow by 14% each year of the project. Material costs will be 21% 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.