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BIDS, Inc. is planning to spend $450,000 on a machine to produce a new game. The machine has an expected life of three years, a

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BIDS, Inc. is planning to spend $450,000 on a machine to produce a new game. The machine has an expected life of three years, a $100,000 estimated resale value at the end of year 3, and will be depreciated straight-line to zero. Revenue from the new game is expected to be $800,000 per year, with costs of $350,000 per year. The firm has a tax rate of 20 percent, and it expects net working capital to increase by $120,000 at the beginning of the project (no more increases are anticipated). What will the year 3 operating cash flow for this project be? O $490,000 O $240,000 O $390,000 $260,000

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