KADS, Inc., has spent $430,000 on research to develop a new spend $230,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and 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 7-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 pf 40 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $115,000 at the beginning of the project. What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign Round your answers to 2 decimal places.) Year FCF $ -398,000 $ 226,176.28 $ 237,722.68. Get Finance homework help