Problem $12-6$ Project Cash Flows $($LG$12-3)$

KADS, Incorporated has spent $$380,000$ on research to develop a new computer game. The firm is planning to spend $$180,000$ 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 $$48,000.$ The machine has an expected life of three years, a $$73,000$ estimated resale value, and falls under

the MACRS seven$-$year class life. Revenue from the new game is expected to be $$580,000$ per year, with costs of $$230,000$ per year.

The firm has a tax rate of $21$ percent, has an opportunity cost of capital of $12$ percent, and expects net working capital to increase by

$$90,000$ 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.