KADS, Incorporated has spent $ 4 8 0 , 0 0 0 on research to develop a
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KADS, Incorporated has spent $ on research to develop a new computer game. The firm is planning to spend $ 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 $ The machine has an expected life of three years, a $ estimated resale value, and falls under the MACRS sevenyear class life. Revenue from the new game is expected to be $ per year, with costs of $ per year. The firm has a tax rate of percent, has an opportunity cost of capital of percent, and expects net working capital to increase by $ at the beginning of the project.
What will the cash flows for this project be find year and
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Posted Date: