This project requires an initial investment of $2,000,000 in equipment which will cost an additional $250,000 to install. The firm will use the attached MACRS depreciation schedule to expense this equipment. Once the equipment is installed, the company will need to increase net working capital by $250,000. The project will last 6 years at which time the market value for the equipment will be $150,000. The project will project a product with a sales price of $95.00 per unit and the variable cost per unit will be $65.00. The fixed costs would be $500,000 per year. Management wants a 4-percentage point premium applied to the current WACC as the projects hurdle rate. Projected Sales Years Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Forecasted Units Sold 32,000 43,000 50,000 50,000 40,000 30,000

What is the Capital Spending Cash Flow for this project?