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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

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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 21 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 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.) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline \multirow{3}{*}{ Year } & \multicolumn{9}{|c|}{ MACRS Depreciation } \\ \hline & \multicolumn{6}{|c|}{ Normal Recovery Period } & \multirow{2}{*}{\begin{tabular}{c} Residential \\ 27.5 \end{tabular}} & \multicolumn{2}{|c|}{\begin{tabular}{l} Real Estate \\ Nonresidential \end{tabular}} \\ \hline & 3 & 5 & 7 & 10 & 15 & 20 & & 31.5 & 39 \\ \hline 1 & 3333% & 2000% & 1429% & 1000% & 500% & 3750% & 3485% & 3042% & 2.461% \\ \hline 2 & 44.45 & 3200 & 24.49 & 1800 & 950 & 7219 & 3636 & 3175 & 2564 \\ \hline 3 & 14.81 & 19:20 & 17.49 & 1440 & 855 & 6677 & 3636 & 3.175 & 2564 \\ \hline 4 & 7.41 & 1152 & 1249 & 1152 & 770 & 6177 & 3636 & 3175 & 2564 \\ \hline 5 & 000 & 1152 & 893 & 922 & 693 & 5713 & 3636 & 3175 & 2564 \\ \hline 6 & 000 & 576 & 892 & 737 & 623 & 5285 & 3636 & 3175 & 2564 \\ \hline 7 & 000 & 000 & 893 & 655 & 590 & 4888 & 3636 & 3175 & 2564 \\ \hline 8 & 0.00 & 000 & 4.46 & 655 & 590 & 4522 & 3636 & 3.175 & 2564 \\ \hline 2 & 0.00 & 000 & 000 & 656 & 591 & 4.462 & 3636 & 3174 & 2564 \\ \hline 10 & 000 & 000 & 000 & 6.55 & 590 & 4.451 & 3.637 & 3175 & 2564 \\ \hline 11 & 0.00 & 0.00 & 000 & 3.28 & 591 & 4462 & 3636 & 3174 & 2564 \\ \hline 12 & 000 & 000 & 000 & 000 & 590 & 4461 & 3637 & 3175 & 2564 \\ \hline 13. & 000 & 000 & 000 & 000 & 591 & 4462 & 3636 & 3.174 & 2564 \\ \hline 14 & 0.00 & 000 & 000 & 000 & 590 & 4461 & 3.637 & 3175 & 2564 \\ \hline 15 & 0.00 & 000 & 000 & 000 & 591 & 4462 & 3.636 & 3.174 & 2564 \\ \hline 16 & 0.00 & 000 & 000 & 000 & 295 & 4461 & 3637 & 3.175 & 2564 \\ \hline 17 & 000 & 000 & 000 & 000 & 000 & 4462 & 3636 & 3174 & 2564 \\ \hline 18 & 000 & 000 & 000 & 000 & 000 & 4.461 & 3637 & 3,175 & 2564 \\ \hline 19 & 000 & 000 & 000 & 000 & 000 & 4462 & 3636 & 3174 & 2564 \\ \hline 20 & 000 & 000 & 000 & 000 & 000 & 4461 & 3.637 & 3175 & 2564 \\ \hline 21 & 0.00 & 0.00 & 000 & 000 & 0.00 & 2.231 & 3636 & 3174 & 2564 \\ \hline 22 & 000 & 000 & 000 & 000 & 000 & 000 & 3637 & 3175 & 2564 \\ \hline 23 & 000 & 0.00 & 000 & 000 & 000 & 000 & 3636 & 3174 & 2564 \\ \hline 24 & 000 & 000 & 000 & 000 & 0 & 000 & 3637 & 3.175 & 2564 \\ \hline 25 & 000 & 000 & 000 & 000 & 000 & 0.00 & 3636 & 3174. & 2564 \\ \hline 26 & 0,00 & 000 & 000 & 000 & 000 & 000 & 3637 & 3175 & 2564 \\ \hline 27 & 000 & 000 & 000 & 000 & 0.00 & 000 & 3636 & 3.174 & 2564 \\ \hline 28 & 000 & 000 & 000 & 000 & 000 & 000 & 1970 & 3175 & 2564 \\ \hline 29 & 000 & 000 & 000 & 000 & 000 & 000 & 000 & 3174 & 2564 \\ \hline 30 & 0.00 & 000 & 000 & 0.00 & 000 & 000 & 000 & 3175 & 2564 \\ \hline 31 & 000 & 000 & 000 & 0.00 & 000 & 000 & 000 & 3174 & 2564 \\ \hline 32 & 000 & 000 & 000 & 000 & 000 & 000 & 000 & 1720 & 2564 \\ \hline 33 & 000 & 000 & 000 & 000 & 000 & 000 & 000 & 000 & 2564 \\ \hline 34 & 000 & 000 & 000 & 000 & 0 & 000 & 000 & 000 & 2564 \\ \hline 35 & 0.00 & 0.00 & 000 & 0.00 & 000 & 000 & 000 & 000 & 2564 \\ \hline 36 & 000 & 000 & 0.00 & 000 & 0.00 & 000 & 000 & 0.00 & 2564 \\ \hline 37 & 000 & 000 & 000 & 000 & 000 & 000 & 000 & 000 & 2564 \\ \hline 38 & 0.00 & 000 & 000 & 000 & 000 & 000 & 000 & 0,0 & 2564 \\ \hline 39 & 0.00 & 000 & 000 & 000 & 000 & 000 & 000 & 000 & 2564 \\ \hline 40 & 0.00 & 000 & 000 & 000 & 000 & 000 & 000 & 000 & 0.107 \\ \hline 41 & 0,00 & 000 & 000 & 000 & 000 & 000 & 000 & 000 & 0000 \\ \hline \end{tabular}

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