KADS, Incorporated, has spent $400,000 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 deprecated, they total $50,000. The machine has an expected life of three years, a $75,000 estimated resale value, and falls under the MACRS seven-year class life. Revenue from the new games expected to be $500,000 per year with costs of $200,000 per year. The firm has a tax rate of 21 percent, an opportunity cost of capital of 15 percent and it expects net working capital to Increase by $100,000 at the beginning of the project. What will the year 1 operating cash flow for this project be? Multiple Choice $195,000 $167335 $246,005 $300,000