Question: CH 12 Est. Cash Flows on Projects and CH 13 W... Saved Book Print Help S KADS, Inc. has spent $380,000 on research to

CH 12 Est. Cash Flows on Projects and CH 13 W... Saved

CH 12 Est. Cash Flows on Projects and CH 13 W... Saved Book Print Help S KADS, Inc. 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 depreciation; they total $48,000. The machine has an expected life of three years and a $73,000 estimated resale value. Revenue from the new game is expected to be $580,000 per year, with fixed costs of $230,000 per year. The firm has a tax rate of 21 percent, an opportunity cost of capital of 12 percent, and it expects net working capital to increase by $90,000 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 ferences FCF Mc Graw Hill Education F1 2 @ 13658 0 < Prev 3 of 12 Next > MAR 15 F2 #3 F3 $ A4 4 F4 % 25 MacBook Air F5 F6 F7 & 6 7 * * 8 2 W E R T Y U S D F G H F8 F9 F10 9 O O P J K L X C V B N M F11

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