KADS, Inc. has spent $310,000 on research to develop a new computer game. The firm is planning to spend $110,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $41,000. The machine has an expected life of three years, a $66,000 estimated resale value, and falls under the MACRS seven-year class life. Revenue from the new game is expected to be $510,000 per year, with costs of $160,000 per year. The firm has a tax rate of 21 percent, an opportunity cost of capital of 11 percent, and it expects net working capital to increase by $55,000 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.)

PLEASE HELP. I have the table and everything, but I do not know how to do any of the math, I just need someone to walk me through the math steps as if I was a 5 year-old. I don't know how to find the depreciation of each year, pretty much most of it and I'm trying to understand. Thank you!

Practice Problems Chapter 12 Saved Help Save & Exit Submit Show correct answers 2 KADS, Inc. has spent $310,000 on research to develop a new computer game. The firm is planning to spend $110,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $41,000. The machine has an expected life of three years, a $66,000 estimated resale value, and falls under the MACRS seven- 0/0 year class life. Revenue from the new game is expected to be $510,000 per year, with costs of $160,000 per year. The firm has a points awarded tax rate of 21 percent, an opportunity cost of capital of 11 percent, and it expects net working capital to increase by $55,000 at the beginning of the project. Scored 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.) eBook 0 2 3 Year FCF References Explanation Year Sales Fixed costs Depreciation EBIT - Taxes (0216) Net income + Depreciation OCF ANWC - APA 0 $ 0.00 0.00 0.00 $ 0.00 0.00 $ 0.00 0.00 $ 0.00 55,000.00 151,000.00 $510,000.00 160,000.00 21,577.90 $328, 422.10 68,968.64 $259,453.46 21,577.90 $281,031.36 0.00 0.00 2 $510,000.00 160,000.00 36,979.90 $313,020.10 65,734.22 $247, 285.88 36,979.90 $284, 265.78 0.00 0.00 $510,000.00 160,000.00 26,409.90 $323,590.10 67,953.92 $255, 636.18 26,409.90 $282,046.08 -55,000.00 -66,006.78 FCF $206,000.00 $281,031.36 $284, 265.78 $403,052.86