26 HW Exercises Determine cash flows eBook Show Me How 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 9,100 units at $52 each. The new manufacturing equipment will cost $197,100 and is expected to have a 10-year life and a $15,100 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: