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Determine cash flows

Kauai Tools 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 $7,900$ units at $$48$ each. The new manufacturing equipment will cost $$154,000$ and is expected to have a $10-$year life and a $$11,800$ residual value. Selling expenses related to the new product are expected to be $5\%$ of sales revenue. The cost to manufacture the product includes the following on a per$-$unit basis:

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