KADS, Inc., has spent $420,000 on research to develop a new computer game. The firm is planning to spend $220,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $52,000. The machine has an expected life of three years, a $77,000 estimated resale value, and falls under the MACRS 7-year class life. Revenue from the new game is expected to be $620,000 per year, with costs of $270,000 per year. The firm has a tax rate of 40 percent, an opportunity cost of capital of 13 percent, and it expects net working capital to increase by $110,000 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.)

I wonder why FA is 0 in year 1 and 2, and 93,778.24 in year 3

Year FCF -382,000.00 0.1% 225.547.52 t 0.1% 236,645 12 +0.1% 432.807.36 +0.1% Explanation: Year 0.00 620,000.00 620,000.00 620,000.00 Sales Fixed costs 0.00 270,000.00 270,000.00 270,000.00 38,868.80 66,612.80 47,572.80 Depreciation 0.00 EBIT 0.00 311,131.20 283,387.20 302,427.20 Taxes 0.00 124,452.48 113,354.88 120,970.88 Net income 0.00 186,678.72 170,032.32 181,456.32 38,868.80 66,612.80 47,572.80 Depreciation 0.00 OCF 0.00 $225,547.52 236,645.12 229,029.12 110,000.00 0.00 110,000.00 ANWC 0.00 0.00 272,000.00 AFA 0.00 93,778.24 FCF -$382,000.00 $225,547.52 236,645.12 432,807.36