Your company has spent $1000000 on research to develop a new computer game. The

Your company has spent $1000000 on research to develop a new computer game. The firm is planning to spend $500000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized and depreciated; they total $75000. The machine has an expected life of 3 years a $100000 estimated resale value and falls under the MACRS 5-Year class life. Revenue from the new game is expected to be $2000000 per year with costs of $800000 per year. The firm has a tax rate of 35 percent an opportunity cost of capital of 12 percent and it expects net working capital to increase by $300000 at the beginning of the project. What will be the net cash flow for year one of this project?