(Solved): KADS, Incorporated has spent \( \$ 500,000 \) on research to develop a new computer game. The firm ...

KADS, Incorporated has spent \( \$ 500,000 \) 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 using bonus depreciated; they total \( \$ 60,000 \). The machine has an expected life of three years, a \( \$ 85,000 \) estimated resale value, and falls under the MACRS seven-year class life. Revenue from the new game is expected to be \( \$ 700,000 \) per year, with costs of \( \$ 350,000 \) per year. The firm has a tax rate of 21 percent, has an opportunity cost of capital of 11 percent, and expects net working capital to increase by \( \$ 150,000 \) 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.