Problem $12-6$ Spreadsheet Problem: Project Cash Flows $($LG$12-3)$

KADS, Incorporated has spent $$390,000$ on research to develop a new computer game. The firm is planning to spend $$190,000$

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 $$49,000.$ The machine has an expected life of three years, a $$74,000$ estimated resale

value, and falls under the MACRS seven$-$year class life. Revenue from the new game is expected to be $$590,000$ per year, with

costs of $$240,000$ 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 $$95,000$ 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.