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Calculate Cash Flows Nature's Way Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of 9,900 units at $30 each. The new manufacturing equipment will cost $117.900 and is expected to have a 10-year life and $9,000 residual value. Selling expenses related to the new product are expected to be 4% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Direct labor $5.1 Direct materials 16.7 1.1 Fixed factory overhead-depreciation Variable factory overhead 2.6 Total $25.5 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. Nature's Way Inc. Net Cash Flows Years 2-9 Last Year Year 1 117,900 X Initial investment Operating cash flows: Annual revenues 297,000 2,376,000 X 297,000 Selling expenses -11,880 -95,040 X -11.30 Cost to manufacture -252.450 X -2,019,600 X 252,450 X Net operating cash flows 32.670 X 261,360 X 32,670 X Total for Year 1 32,670 X Total for Years 2.9 261,360 X Residual value 9,000 Total for last year 41.670 X Feedback Check My Work For Year 1, subtract the amount to be invested from the operating cash flows (annual revenues less selling expenses less cost to manufacture). For Years 2-10, subtract the selling expenses and the costs to manufacture from the annual revenues. For Year 10 only, add the residual value