You are evaluating a project for The Farstroke golf club, guaranteed to

correct that nasty slice. You estimate the sales price of The Farstroke to

be $$400$ per unit and sales volume to be $1,000$ units in year $1$;$1,500$ units

in year $2$; and $1,325$ units in year $3.$ The project has a $3-$year life. Variable

costs amount to $$225$ per unit and fixed costs are $$100,000$ per year.

The project requires an initial investment of $$165,000$ in assets, which

can be depreciated using bonus depreciation. The actual market value

of these assets at the end of year $3$ is expected to be $$35,000.$ NWC

requirements at the beginning of each year will be approximately $20$

percent of the projected sales during the coming year. The tax rate is $21$

percent and the required return on the project is $10$ percent.

What change in NWC occurs at the end of year $1?$