QRW Corp. needs to replace an old lathe with a new, more efficient model. The old lathe was purchased for $50,000 nine years ago and has a current book value of $5,000. ( The old machine is being depreciated on a straight-line basis over a ten year useful life.) The new machine costs $100,000. It will cost the company $10,000 to get the new lathe to the factory and get installed. The old machine will be sold as scrap metal for $2000. The new machine is also eing depreciated on a straight-line basis over ten years. Sales are expected to increase by $8000 per year while operating expenses are expected to decrease by $12,000 per year. QRW's marginal tax rate is 40%. Additional working capital of $3,000 is required to maintain the new machine and higher sales level. The new lathe is expected to be sold fro $5,000 at the end of the project’s ten-year life. What is the incremental free cash flow during year 1 of the project?