Lendrum Inc. is considering a new project whose data are shown below. The equipment has an economic life of 3 years, and is in CCA class 10 (20%). The half-year rule applies. Revenues and cash operating costs are expected to be constant over the projects 3-year life. What is the net operating cash flow for Year 1?

		Equipment cost		$80,000
		Annual sales revenues		$60,000
		Annual cash operating costs		$35,000
		Tax rate		35.0%