Your company has spent $200,000 on research to develop a new computer game.The firm is planning to spend $300,000 on a machine to produce the new game.Shipping and installation costs of the machine will be capitalized and depreciated; they total $25,000.The machine has an expected life of three years,a $50,000 estimated resale value,and falls under the MACRS seven-year class life.Revenue from the new game is expected to be $400,000 per year,with costs of $150,000 per year.The firm has a tax rate of 35 percent,an opportunity cost of capital of 10 percent,and it expects net working capital to increase by $75,000 at the beginning of the project.What will the cash flows for this three-year project be?

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The Answer of Your company has spent $200,000 on research to develop a new computer game.The firm is planning to spend $300,000 on a machine to produce the new game.Shipping and installation costs of the machine will be capitalized and depreciated; they total $25,000.The machine has an expected life of three years,a $50,000 estimated resale value,and falls under the MACRS seven-year class life.Revenue from the new game is expected to be $400,000 per year,with costs of $150,000 per year.The firm has a tax rate of 35 percent,an opportunity cost of capital of 10 percent,and it expects net working capital to increase by $75,000 at the beginning of the project.What will the cash flows for this three-year project be?

Your Company Has Spent $200,000 on Research to Develop a New