Swindler Ltd has completed a feasibility study costing $22,245 to determine if there is any benefit in purchasing a new asset. The machine will cost $308,775 and an additional $12,643 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 $8,008.

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 $41,964 and additional stock of $68,206 will be needed. Wages will change from $85,000 to $35,968 and Fixed Costs will remain at $59,698.

The new machine is expected to produce sales of $1,350,872 in the first year and will grow by 12% each year of the project. Material costs will be 28% 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.