Determine Cash Flows Natural Foods 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 6,000 units at $40 each. The new manufacturing equipment will cost $97,500 and is expected to have a 10-year life and a $7,500 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 $6.80 Direct materials 22.30 Fixed factory overhead-depreciation Variable factory overhead 3.40 1.50 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 the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar. Natural Foods Inc. Net Cash Flows Year 1 Years 2-9 Last Year -97,500 Initial investment Operating cash flows: Annual revenues 240,000 $ 240,000 $ 240,000 Selling expenses -9,600 -9,600 -9,600 Cost to manufacture -195,000 -195,000 -195,000 Net operating cash flows $ 35,400 35,400 35,400 Total for Year 1 26,700 X