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CH 12 Est. Cash Flows on Projects and CH 13 W... Saved Book Print Help S KADS, Inc. has spent $380,000 on research to
CH 12 Est. Cash Flows on Projects and CH 13 W... Saved Book Print Help S KADS, Inc. has spent $380,000 on research to develop a new computer game. The firm is planning to spend $180,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated using bonus depreciation; they total $48,000. The machine has an expected life of three years and a $73,000 estimated resale value. Revenue from the new game is expected to be $580,000 per year, with fixed costs of $230,000 per year. The firm has a tax rate of 21 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $90,000 at the beginning of the project. What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) Year ferences FCF Mc Graw Hill Education F1 2 @ 13658 0 < Prev 3 of 12 Next > MAR 15 F2 #3 F3 $ A4 4 F4 % 25 MacBook Air F5 F6 F7 & 6 7 * * 8 2 W E R T Y U S D F G H F8 F9 F10 9 O O P J K L X C V B N M F11
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