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 7,500 units at $30 each. The new manufacturing equipment will cost $89.300 and is expected to have a 10-year life and a $6,800 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 $5.10 Direct materials 16.70 Fixed factory overhead-deprecation Variable factory overhead 2.60 Total $25.50 1.10