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CH 12 Est. Cash Flows on Projects and CH 13 Weighi... 0 Saved Helps KADS, Inc. has spent $300,000 on research to develop a new

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CH 12 Est. Cash Flows on Projects and CH 13 Weighi... 0 Saved Helps KADS, Inc. has spent $300,000 on research to develop a new computer game. The firm is planning to spend $100,000 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 $40,000. The machine has an expected life of three years and a $65,000 estimated resale value. Revenue from the new game is expected to be $500,000 per year, with fixed costs of $150,000 per year. The firm has a tax rate of 21 percent an opportunity cost of capital of 13 percent, and it expects net working capital to increase by $50,000 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 es FCF

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