Calculate Cash Flows Nature's Way 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 7,600 units at $32 each. The new manufacturing equipment will cost $98,800 and is expected to have a 10-year life and $7,600 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: Direct labor $5.40 Direct materials 17.90 Fixed factory overhead-depreciation 1.20 Variable factory overhead 2.70 Total $27.20 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. Out of Eden, Inc. Net Cash Flows Year 1 Years 2-9 Last Year Initial investment -98,800 Operating cash flows: Annual revenues Selling expenses 243,200 243,200 243,200 -12.160 -12.160 -12.160 Check My Work Previous Next > Total $27.20 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 Out of Eden, Inc. Net Cash Flows Year 1 Years 2-9 Last Year Initial investment $ -98,800 Operating cash flows: Annual revenues 243,200 $ 243,200 $ 243,200 Selling expenses -12,160 -12,160 -12.160 Cost to manufacture 206,720 206,720 X 206,720 x 24,320 Net operating cash flows $ 24,320 X Total for Year 1 -74,480 x 24,320 Total for Years 2-9 24,320 X Residual value 7,600 Total for last year 31,920 X