Calculate Cash Flows Daffodil Inc. is planning to invest in manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 120,000 units at $9 each. The new manufacturing equipment will cost $320,000, have a 10-year life, a residual value of $20,000, and will be depreciated using the straight-line method. Selling expenses related to the new product are expected to be 15% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Direct labor $1.00 Direct materials 3.40 Fixed factory overhead-depreciation 0.25 Variable factory overhead 0.35 Total $5.00 a. 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. Year 1 Years 2 - 9 Last Year Operating cash flows: Annual revenues $ 1,080,000.0 Selling expenses 162,000.00 x Cost to manufacture 570,000.00 X Net operating cash flows $ 348,000.00 $ 1,080,000.0 162,000.00 x 570,000.00 X $ 348,000.00 $ 1,080,000.0 162,000.00 570,000.00 $ 348,000.00 Initial investment 348,000.00 Total for year 1 28,000.00 Total for years 2-9 $ 348,000.00 Residual value 20,000.00 Total for last year $ 368,000.00