Your company has spent $200,000 on research to develop a new computer game. The frm is planning to spend $40,000 on a machine to produce the new game. Shipping and installation costs of the machine...

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Extracted text: Your company has spent $200,000 on research to develop a new computer game. The frm is planning to spend $40,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $5,000. The machine has an expected life of five years, a $25,000 estimated resale value, and falls under the MACRS five-year class life. Revenue from the new game is expected to be $300,000 per year, with costs of $100,000 per year. The firm has a tax rate of 35 percent, an opportunity cost of capital of 14 percent, and it expects net working capital to increase by $50,000 at the beginning of the project. What will be the operating cash flow for year one of this project? MACRS Depreciation Year 3-Year Property 3-Year Property 1. 33.33% 20.00% 44.45% 32.00% 14.81% 19.20% 4. 7.41% 11.52% 0% 11.52% 5.76% 133150


Extracted text: Team Sports Industries has a cash balance of $60,000; accounts payable of $40,000; inventory of $100,000, accounts receivable of $110,000; notes payable of $80,000: and accrued wages and tases of $10.000. How much net working capital does the firm need to fund? O $150000 S140000 O s210000 O S130.000