Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

KADS, inc, has spent dollar 300.000 on research to develop a new computer game. the firm is planning to spend dollar 150,000 on a machine

image text in transcribed
KADS, inc, has spent dollar 300.000 on research to develop a new computer game. the firm is planning to spend dollar 150,000 on a machine lo produce me new game, snipping and installation costs of the machine wm be capitalized and depreciated; they total $20,000 The machine Das an expected Me of five years, a dollar 60,000 estimated resale value, and fans under me MACRS seven-year class life (depreciation of 14 29 percentage, 24.49 percentage. 17.49 percentage, 12 49 percentage, and 8.93 percentage In years 3, 4, and 5 respectively). Revenue from the new game is expected to be dollar 600,000 per year, with costs of dollar 350,000 per year. The firm has a tax rate of 30 percent, an opportune cost of capital of 12 percent, and A expects net working capital to increase by dollar 50,000 at me beginning of me project. what ml me YEAR 1 (ONLY YEAR 11) estimated after-tax cash flow for this project be? Select one: dollar 520.000 dollar 230,000 dollar 102, 288 dollar 220,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Message Brand And Dollars Auditing Marketing Operations

Authors: J. Mike Jacka, Peter R. Scott

1st Edition

163454000X, 9781634540001

More Books

Students also viewed these Accounting questions

Question

Define Scientific Management

Answered: 1 week ago

Question

Explain budgetary Control

Answered: 1 week ago

Question

Solve the integral:

Answered: 1 week ago

Question

What is meant by Non-programmed decision?

Answered: 1 week ago

Question

Evaluate the importance of diversity in the workforce.

Answered: 1 week ago

Question

Identify the legal standards of the recruitment process.

Answered: 1 week ago