KADS, Incorporated has spent $300,000 on research to develop a new computer game. The firm is planning to spend $100,000 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 $40,000. The machine has an expected life of three years, a $65,000 estimated resale value, and falls under the MACRS seven-year class life. Revenue from the new game is expected to be $500,000 per year, with costs of $150,000 per year. The firm has a tax rate of 21 percent, has an opportunity cost of capital of 13 percent, and expects net working capital to increase by $50,000 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.

Year	0	1	2	3
FCF

*Note* The following answers are INCORRECT:

Year 0: $-440,000 Year 1: $290,617 Year 2: $290,617 Year 3: $479,317