Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 5,000 units at $18 each. The new manufacturing equipment will cost $120,000 and is expected to have a 10-year life and a $17,000 residual value. Selling expenses related to the new product are expected to be 3% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: 

Direct labor........................................................................................$2.50

Direct materials.................................................................................3.20

Fixed factory overhead—depreciation...........................................2.40

Variable factory overhead.................................................................0.90

Total $ 9.00

Determine the net cash flows for the first year of the project, Years 2–9, and for the last year of the project.