Question
Hi everyone, I am needing help with this problem for my finance class... I've attempted it several different times and in several different ways, and
Hi everyone, I am needing help with this problem for my finance class... I've attempted it several different times and in several different ways, and I am still getting a wrong answer. Any and all help would be greatly appreciated. Thanks everyone!
"KADS, Inc., has spent $470,000 on research to develop a new computer game. The firm is planning to spend $270,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $57,000. The machine has an expected life of three years, a $82,000 estimated resale value, and falls under the MACRS 7-year class life. Revenue from the new game is expected to be $670,000 per year, with costs of $320,000 per year. The firm has a tax rate of 40 percent, an opportunity cost of capital of 11 percent, and it expects net working capital to increase by $135,000 at the beginning of the projec
What will the cash flows for this project be? The question simply wants me to find the future cash flows for years 0, 1, 2, and 3, for negative amounts to be indicated by a minus sign, and for the answers to be rounded to 2 decimal places.
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