KADS, Incorporated, has spent $400,000 on research to develop a new computer game. The firm...
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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 depreciation; 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. Amounts should be indicated by a minus sign. Round your answers to decimal places. Year is $ and year is $ I need help with finding year and year Please explain how you got the answer. Thank you
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 depreciation; 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.
Amounts should be indicated by a minus sign. Round your answers to decimal places. Year is $ and year is $ I need help with finding year and year Please explain how you got the answer. Thank you
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