Canyon Buff Corp. is considering launch a project Pi to expand the production of a new construction chemical. The production line which will be placed in a warehouse that the company could have otherwise rented out for $20,000 per year. They will borrow $200,000 from Amarillo National Bank at an interest rate of 5% per annum for this project.

The projected financials for the levered project in Year 1 are as follows:

• sales will be 100,000
• cost of goods sold will be 15,000
• SG&A expense will be 5,000
• annual depreciation will be 25,000
• interest costs will be $30,000 resulting from the project
• average tax rate is 20% and marginal tax rate is 30%
• increase in net working capital will be 12,000

The unlevered free cash flow in Year 1 will be $______.