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 $6,700$ units at $$38$ each. The new manufacturing equipment will cost $$108,800$ and is expected to have a $10-$year life and $$8,300$ 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 $$6\mathrm{.}50$

Direct materials $21\mathrm{.}00$

Fixed factory overhead$-$depreciation $1\mathrm{.}50$

Variable factory overhead $3\mathrm{.}30$

Total $$32\mathrm{.}30$

Determine the net cash flows for the first year of the project, Years $29,$ 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.

Marigold Inc.

Net Cash Flows

blank

Year $1$ Years $2-9$ Last Year

Initial investment $fill in the blank $1$

Operating cash flows:

Annual revenues $fill in the blank $2$

$fill in the blank $3$

$fill in the blank $4$

Selling expenses fill in the blank $5$

fill in the blank $6$

fill in the blank $7$

Cost to manufacture fill in the blank $8$

fill in the blank $9$

fill in the blank $10$

Net operating cash flows $fill in the blank $11$

$fill in the blank $12$

$fill in the blank $13$

Total for Year $1$ $fill in the blank $14$

Total for Years $2-9$ $fill in the blank $15$

Residual value fill in the blank $16$

Total for last year $fill in the blank $17$