You are evaluating a project for The Tiff$-$any golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Tiff$-$any to be $$470$ per unit and sales volume to be $1,200$ units in year $1$; $1,125$ units in year $2$; and $1,000$ units in year $3.$ The project has a $3-$year life. Variable costs amount to $$260$ per unit and fixed costs are $$100,000$ per year. The project requires an initial investment of $$144,000$ in assets, which will be depreciated straight$-$line to zero over the $3-$year project life. The actual market value of these assets at the end of year $3$ is expected to be $$28,000.$ NWC requirements at the beginning of each year will be approximately $30$ percent of the projected sales during the coming year. The tax rate is $30$ percent and the required return on the project is $12$ percent.

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

Decrease of