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You are analyzing the purchase of new equipment. Since you are not an expert on this type of equipment, you hire a consulting firm to

You are analyzing the purchase of new equipment. Since you are not an expert on this type of equipment, you hire a consulting firm to make recommendations. The consultant charged you $4,819 and recommended purchasing the latest model from HiFlex of America. The equipment costs $70,992, and it will cost another $9,276 to modify it for special use by your firm. The equipment will be depreciated on a straight-line basis over 7 years with no salvage value. You expect the equipment will be sold after 3 years for $25,648. Use of the equipment will require an increase in your company's net working capital of $4,941, which will be recovered at the end of year 3. The use of the equipment will have no effect on revenues, but it is expected to save the firm $50,568 per year in before-tax cash operating costs. Your company's marginal tax rate is 33%. What is the operating free cash flow in the first year of the project, to the nearest dollar?

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