You were just hired by Capsco Inc. to analyze the purchase of reusable water bottle manufacturing equipment. The equipment has a 3-year tax life, and the allowed depreciation rates for such property are 33.33%, 44.45%, 14.81%, and 7.41% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the equipment's 10-year expected life. What is the Year 1 cash flow?

Equipment cost (depreciable basis) $57,750

Sales revenues, each year $60,000

Operating costs (excl. deprec.) $25,000

Tax Rate 40.0%