Created a Kotlin version of the sample.

.gitignore

@@ -1,9 +1,8 @@
 *.iml
 .gradle
 /local.properties
-/.idea/workspace.xml
-/.idea/libraries
 .DS_Store
 /build
 /captures
 .externalNativeBuild
+.idea

app/build.gradle

@@ -1,20 +1,14 @@
-project.ext {
-    appcompat = "25.3.1"
-    arch = "1.0.0-alpha1"
-    retrofit = "2.0.2"
-    constraintLayout = "1.0.2"
-    dagger_version = "2.11"
-}
-
 apply plugin: 'com.android.application'
+apply plugin: 'kotlin-android'
+apply plugin: 'kotlin-kapt'
 
 android {
-    compileSdkVersion 25
-    buildToolsVersion "25.0.3"
+    compileSdkVersion 27
+    buildToolsVersion "27.0.1"
     defaultConfig {
         applicationId "com.example.test.mvvm_sample_app"
         minSdkVersion 19
-        targetSdkVersion 25
+        targetSdkVersion 27
         versionCode 1
         versionName "1.0"
         testInstrumentationRunner "android.support.test.runner.AndroidJUnitRunner"
@@ -25,7 +19,6 @@ android {
             proguardFiles getDefaultProguardFile('proguard-android.txt'), 'proguard-rules.pro'
         }
     }
-
     dataBinding {
         enabled = true
     }
@@ -35,30 +28,55 @@ android {
     }
 }
 
+project.ext {
+    appcompat = "27.0.2"
+    arch = "1.0.0"
+    retrofit = "2.3.0"
+    constraintLayout = "1.0.2"
+    dagger_version = "2.13"
+}
+
 dependencies {
     compile fileTree(dir: 'libs', include: ['*.jar'])
-    androidTestCompile('com.android.support.test.espresso:espresso-core:2.2.2', {
-        exclude group: 'com.android.support', module: 'support-annotations'
-    })
+    // kotlin
+    compile "org.jetbrains.kotlin:kotlin-stdlib-jdk7:$kotlin_version"
+    kapt "com.android.databinding:compiler:3.1.0-alpha08"
 
+    // google support libraries
     compile "com.android.support:appcompat-v7:$project.appcompat"
     compile "com.android.support:cardview-v7:$project.appcompat"
     compile "com.android.support:recyclerview-v7:$project.appcompat"
+    compile "com.android.support.constraint:constraint-layout:$project.constraintLayout"
+    compile "com.android.support:support-v4:$project.appcompat"
+    compile "com.android.support:design:$project.appcompat"
+
+    // architecture components
     compile "android.arch.lifecycle:runtime:$project.arch"
     compile "android.arch.lifecycle:extensions:$project.arch"
+    kapt "android.arch.lifecycle:compiler:$project.arch"
+
+    // network libraries
     compile "com.squareup.retrofit2:retrofit:$project.retrofit"
     compile "com.squareup.retrofit2:converter-gson:$project.retrofit"
-    annotationProcessor "android.arch.lifecycle:compiler:$project.arch"
-    compile "com.android.support.constraint:constraint-layout:$project.constraintLayout"
-    compile "com.android.support:support-v4:$project.appcompat"
 
+    // dagger2 dependency injection
     compile "com.google.dagger:dagger:$project.dagger_version"
     compile "com.google.dagger:dagger-android:$project.dagger_version"
     compile "com.google.dagger:dagger-android-support:$project.dagger_version"
+    kapt "com.google.dagger:dagger-android-processor:$dagger_version"
+    kapt "com.google.dagger:dagger-compiler:$dagger_version"
 
-    annotationProcessor "com.google.dagger:dagger-android-processor:$dagger_version"
-    annotationProcessor "com.google.dagger:dagger-compiler:$dagger_version"
-
+    // test libraries
     testCompile 'junit:junit:4.12'
-    compile 'com.android.support:design:25.3.1'
-}
+    androidTestCompile('com.android.support.test.espresso:espresso-core:2.2.2', {
+        exclude group: 'com.android.support', module: 'support-annotations'
+    })
+    androidTestCompile('com.android.support.test.espresso:espresso-contrib:2.2') {
+        // Necessary to avoid version conflicts
+        exclude group: 'com.android.support', module: 'appcompat'
+        exclude group: 'com.android.support', module: 'support-v4'
+        exclude group: 'com.android.support', module: 'support-annotations'
+        exclude module: 'recyclerview-v7'
+    }
+
+}

app/src/androidTest/java/com/example/test/mvvmsampleapp/UiTests.kt

@@ -0,0 +1,52 @@
+package com.example.test.mvvmsampleapp
+
+import android.support.test.espresso.Espresso.onView
+import android.support.test.espresso.action.ViewActions.click
+import android.support.test.espresso.assertion.ViewAssertions.matches
+import android.support.test.espresso.contrib.RecyclerViewActions
+import android.support.test.espresso.matcher.ViewMatchers.isDisplayed
+import android.support.test.espresso.matcher.ViewMatchers.withId
+import android.support.test.rule.ActivityTestRule
+import android.support.test.runner.AndroidJUnit4
+import com.example.test.mvvmsampleapp.view.ui.MainActivity
+import com.example.test.mvvmsampleapp.view.viewholders.ProjectViewHolder
+import org.junit.Before
+import org.junit.Rule
+import org.junit.Test
+import org.junit.runner.RunWith
+
+
+
+
+
+/**
+ * Instrumentation test, which will execute on an Android device.
+ *
+ * @see [Testing documentation](http://d.android.com/tools/testing)
+ */
+@RunWith(AndroidJUnit4::class)
+class UiTests {
+
+    @Rule
+    @JvmField
+    var mainActivityTestRule = ActivityTestRule<MainActivity>(MainActivity::class.java)
+
+    /**
+     * Lazy example test, phone should be connected to the internet.
+     * Ideally you need to implement a mock web server.
+     */
+    @Before
+    fun waitForLoading() {
+        onView(withId(R.id.loading_projects)).check(matches(isDisplayed()))
+        Thread.sleep(1000)
+    }
+
+    @Test
+    fun clickFirstElement() {
+        onView(withId(R.id.project_list))
+                .perform(RecyclerViewActions.actionOnItemAtPosition<ProjectViewHolder>(0, click()))
+
+        onView(withId(R.id.imageView)).check(matches(isDisplayed()))
+    }
+
+}

app/src/main/AndroidManifest.xml

@@ -5,7 +5,7 @@
     <uses-permission android:name="android.permission.INTERNET" />
 
     <application
-        android:name=".MVVMApplication"
+        android:name=".App"
         android:allowBackup="true"
         android:icon="@mipmap/ic_launcher"
         android:label="@string/app_name"

app/src/main/java/com/example/test/mvvmsampleapp/App.kt

@@ -0,0 +1,23 @@
+package com.example.test.mvvmsampleapp
+
+import android.app.Activity
+import android.app.Application
+import com.example.test.mvvmsampleapp.di.AppInjector
+import dagger.android.DispatchingAndroidInjector
+import dagger.android.HasActivityInjector
+import javax.inject.Inject
+
+class App : Application(), HasActivityInjector {
+
+    @Inject
+    lateinit var dispatchingAndroidInjector: DispatchingAndroidInjector<Activity>
+
+    override fun onCreate() {
+        super.onCreate()
+        AppInjector.init(this)
+    }
+
+    override fun activityInjector(): DispatchingAndroidInjector<Activity>? {
+        return dispatchingAndroidInjector
+    }
+}