Swindler Ltd has completed a feasibility study costing $23,281 to determine if there is any benefit in purchasing a new asset. The machine will cost $290,586 and an additional $16,561 will need to spent to have the machine in operational state. Before the machine can be used staff must be trained at a further cost of $6,842.

The project is expected to last for 5 years and the Taxation Office has confirmed this. At the end of the project the machine will be fully depreciated.

Initial advertising costs are expected to $33,773 and additional stock of $6,873 will be needed. Wages will change from $86,000 to $65,417 and Fixed Costs will remain at $57,878.

The new machine is expected to produce sales of $1,271,526 in the first year and will grow by 10% each year of the project. Material costs will be 30% of sales in each year.

You are required to calculate the net cash flow (round to the nearest dollar and DO NOT include $ sign) that would appear in Year 0 of a Capital Budget.

Assume the Australian Company tax Rate applies. 30%