Your company is considering a new project.The required equipment has a3-year tax life,after which it will have zero salvage value.The equipment will be depreciated by the straight-line method over3years.The cost of this equipment is$60,000.The project will increase the firms revenue by$10,000and decrease the operating costs by$7,500per year over the project's3-year life.The firm falls in35%tax bracket.The company is financed exclusively by equity,the beta of this company1.4,the risk free rate is3%and the market risk premium is8%.

Whatis theproject'scashflowfor year1?