Question: KADS, Incorporated has spent $ 3 4 0 , 0 0 0 on research to develop a new computer game. The firm is planning to

KADS, Incorporated has spent $340,000 on research to develop a new computer game. The firm is planning to spend $140,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated using bonus depreciated; they total $44,000. The machine has an expected life of three years, a $69,000 estimated resale value, and falls under
20 points the MACRS seven-year class life. Revenue from the new game is expected to be $540,000 per year, with costs of $190,000 per year. The firm has a tax rate of 21 percent, has an opportunity cost of capital of 11 percent, and expects net working capital to increase by $70,000 at the beginning of the project.
What will the cash flows for this project be?
Note: Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.
\table[[Year,,0,,1,,2,,3],[FCF,$,524,000.00,$,514,149.25,$,459,130.08,$,517,923.30
 KADS, Incorporated has spent $340,000 on research to develop a new

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