Question: Problem 1 2 - 6 Project Cash Flows ( LG 1 2 - 3 ) KADS, Inc. has spent $ 3 8 0 , 0

Problem 12-6 Project Cash Flows (LG12-3)
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; they total $48,000. The
machine has an expected life of three years, a $73,000 estimated resale value, and falls under the MACRS 7-year class life. Revenue
from the new game is expected to be $580,000 per year, with 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.)
Answer is not complete. Need help finding year 3.
 Problem 12-6 Project Cash Flows (LG12-3) KADS, Inc. has spent $380,000

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