Reliable 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 MACRS rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year life. What is the project's operating cash flow during Year 1?

Equipment cost (depreciable basis)	$75,000
MACRS rates, years 1-4	33% 45% 15% 7%
Sales	$60,000
Operating costs excl. deprn	$25,000
Tax rate	35%

		$31,413
		$32,793
		$33,654
		$34,875
		$35,245