is considering replacing the machine it uses to produce baseball bats. The machine would cost $960,000, have a 12-year life, and increase revenues by $220,000 a year. Annual costs will amount to $35,000. The machine will be depreciated straight-line over its expected life to a book value of zero. The required rate of return is 13 percent and the tax rate is 23%. What is the incremental free cash flow in Year 1?

		$160,850
		$207,050
		$191,650
		$199,350