Wilde Cap Resort (WCR) has spent $193,000 on a management consultant report that reviewed the feasibility of installing new plant that costs $630,000 and replace their old plant. Training of staff to operate the new plant will cost $200,000 and must be paid today. This amount is tax deductible when paid. However, the firm's managers propose to spread out the training expense over the 9 year life of the project. The new plant will require an inventory level of $347,000 from the existing level of $266,000 at the beginning of operations. The company's accountant recommends including the $193,000 prepaid expense of the management consultant report as an opportunity cost in the analysis. The old fully plant will be sold today for $52,000 if WCR proceeds with the new plant. The old plant would be worthless in 9 years' time. The capital expenditure cost of the plant will be partly financed with the proceeds from a $1.77 million bank loan. What is the initial cash flow of the project if the corporate tax rate is 30%?

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