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

KADS, Incorporated, has spent $$400,000$ on research to develop a new computer game. The firm is planning to spend $$200,000$ on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated using bonus depreciation; 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 game is expected to be $$600,000$ per year, with costs of $$250,000$ per year. The firm has a tax rate of $21$ percent, has an opportunity cost of capital of $15$ percent, and expects net working capital to increase by $$100,000$ 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.

$\backslash$table$[[$Year$,,0,1,2,3],[$FCF$,$$$,(350,000\mathrm{.}00)$$$,283,002\mathrm{.}25$$$,289,357\mathrm{.}25,460,682\mathrm{.}25x$