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Problem 1 2 - 6 Project Cash Flows ( LG 1 2 - 3 ) KADS, Incorporated has spent $ 4 3 0 , 0

Problem 12-6 Project Cash Flows (LG12-3)
KADS, Incorporated has spent $430,000 on research to develop a new computer game. The firm is planning to spend $230,000 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 $53,000. The machine has an expected life of three years, a $78,000 estimated resale value, and falls under the MACRS seven-year class life. Revenue from the new game is expected to be $630,000 per year, with costs of $280,000 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 $115,000 at the beginning of the project.
What will the cash flows for this project be?
Note: Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.
Answer is complete but not entirely correct.
\table[[Year,,0,,1,2,3],[FCF,$,(398,000.00),$,284,992.55,291,054.41,229,798.68prop
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