Smart Concepts Inc. is considering a five-year project that requires an initial capital investment of $1 million.

Smart Concepts Inc. is considering a five-year project that requires an initial capital investment of

$1 million. The project is expected to generate operating revenue of $500,000 per year, and the

associated operating expenses are estimated at $250,000 per year. The capital asset belongs to

asset class 9, which has a CCA rate of 30 percent. The firm's marginal tax rate is 35 percent.

What is the after-tax cash flow for year 1?