Develop a new computer game

Assignment Help Finance Basics
Reference no: EM13197698

KADS, Inc. has spent $400,000 on research to develop a new computer game. The firm is planning to spend $200,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $50,000. The machine has an expected life of 3 years, a $75,000 estimated resale value, and falls under the MACRS 7-Year class life. Revenue from the new game is expected to be $600,000 per year, with costs of $250,000 per year. The firm has a tax rate of 35 percent, an opportunity cost of capital of 15 percent, and it expects net working capital to increase by $100,000 at the beginning of the project. What will the cash flows for this project be?

362_what will the cash flows.png

Reference no: EM13197698

Questions Cloud

Recommend a best practice an hr manager of an mne can do : Recommend a best practice an HR manager of an MNE can use to manage the human capital needs of a highly diverse workforce made up of individuals with different cultural backgrounds, speaking different languages and having different educational exp..
What is the area of the walkway in square feet : A square garden has a 4-ft walkway around it. The garden has a perimeter of 260 ft. What is the area of the walkway in square feet?
State extremely disappointed with purchase : I have to reserve to google to get to the page consisting of all courses. Please just fix this, its very frustrating to deal with this mess. I'm extremely disappointed with my purchase, after reading countless ads telling me otherwise.
At what rate is the distance from the plane to the radar : A plane flying with a constant speed of 14 km/min passes over a ground radar station at an altitude of 12 km and climbs at an angle of 50 degrees. At what rate is the distance from the plane to the radar station increasing 4 minutes later?
Develop a new computer game : What will the cash flows for this project  - develop a new computer game. The firm is planning to spend $200,000 on a machine to produce the new game.
Discuss the cultural environment of one country : developed country in which an office or subsidiary of a U.S.-based global organization or MNE exists. for a list of global organizations and discuss the cultural environment of one country in which a U.S.-based MNE exists.
Find the speed going : a person traveled 120 miles in one direction. The return trip was accomplished at double the speed and took 3 hours less time. Find the speed going.
How many gallons of gas would she need to drive miles : Debra drove 430 miles using 18 gallons of gas. At this rate, how many gallons of gas would she need to drive miles 301?
Formula to calculate the economic profit : Compute the economic profit of the firm if Sales-10000,material cost-3000,labour cost-2000, Administration cost-1000.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd