Your new employer, Tammy Software, is considering a new project whose data are shown below. The equipment that would be used 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 project's 10-year expected life.

What is the project's Year 1 Net Operating Cash Flow?

Equipment cost (depreciable basis) $65,000 Sales revenues, each year $60,000 Operating costs (excl. deprec.) $25,000 Tax rate 35.0% Net Operating CF =EBIT * (1-Tax) +Dep EBIT = Sales - Costs - Dep

Please show work.