KADS, Incorporated has spent $$450,000$ on research to develop a new computer game. The firm is planning to spend $$250,000$ 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 $$55,000.$ The machine has an expected life of three years, a $$80,000$ estimated resale value, and falls under

the MACRS seven$-$year class life. Revenue from the new game is expected to be $$650,000$ per year, with costs of $$300,000$ per year.

The firm has a tax rate of $21$ percent, has an opportunity cost of capital of $13$ percent, and expects net working capital to increase by

$$125,000$ 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. Use MACRS depreciation

values from table $12\mathrm{.}8$ in the ebook.