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Please Help!!! Will Rate! 1 answer below » KADS, Inc. has spent $360,000 on research to develop a new computer game. The firm is planning to spend $196,000 on a machine to produce the new game. Shipping
and installation costs of the machine will be capitalized and depreciated; they total $46,000. The machine has an expected life of three years, a $71,000
estimated resale value, and falls under the MACRS seven-year class life. Revenue from the new game
is expected to be $596,000.00 per year, with costs of $246,000.00 per year. The firm has a tax rate of 35 percent, an opportunity cost of capital of 0 percent,
and it expects net View complete question » KADS, Inc. has spent $360,000 on research to develop a new computer game. The firm is planning to spend $196,000 on a machine to produce the new game. Shipping
and installation costs of the machine will be capitalized and depreciated; they total $46,000. The machine has an expected life of three years, a $71,000
estimated resale value, and falls under the MACRS seven-year class life. Revenue from the new game
is expected to be $596,000.00 per year, with costs of $246,000.00 per year. The firm has a tax rate of 35 percent, an opportunity cost of capital of 0 percent,
and it expects net working capital to increase by $96,000.00 at the beginning of the project. What will the cash flows for this project be? (Negative amounts should be indicated by a minus sign. Round your answers to
2 decimal places. Omit the “$” sign in your response.) Total cash flow Year 0 $ Year 1 $ Year 2 $ Year 3 $ View less » Jan 17 2014 04:29 PM
