Determine Cash Flows Marigold 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 7,000 units at $40 each. The new manufacturing equipment will cost $113,700 and is expected to have a 10-year life and $8,700 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 $6.80 Direct materials 22.30 Fixed factory overhead-depreciation 1.50 Variable factory overhead 3.40 Total $34.00 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. Initial investment Operating cash flows: Annual revenues Selling expenses Cost to manufacture Marigold Inc. Net Cash Flows Net operating cash flows Total for Year 1 Total for Years 2-9 Residual value Total for last year Year 1 Years 2-9 Last Year 00000 10.00 100 0000 Check My Work 10 more Check My Work uses remaining. Previous Next>