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KADS, Inc. has spent $ 3 8 0 , 0 0 0 on research to develop a new computer game. The firm is planning to
KADS, Inc. has spent $ on research to develop a new computer game. The firm is planning to spend $ on a machine
to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $ The
machine has an expected life of three years, a $ estimated resale value, and falls under the MACRS year class life. Revenue
from the new game is expected to be $ per year, with costs of $ per year. The firm has a tax rate of percent, an
opportunity cost of capital of percent, and it expects net working capital to increase by $ at the beginning of the project.
What will the cash flows for this project beNegative amounts should be indicated by a minus sign. Round your answers to
decimal places.
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