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 7,300 units at $40 each. The new manufacturing equipment will cost $118,600 and is expected to hav a 10-year life and a $9,100 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 Direct materials Fixed factory overhead-depreciation Variable factory overhead Total $6.80 22.30 1.50 3.40 $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 Initial investment Operating cash flows: Annual revenues Year 1 -118,600 Years 2-9 Last Year $ 292,000 292,000 $ 292,000 Selling expenses -14,600 -14,600 -14,600 Cost to manufacture -248,200 X -248,200 X -248,200 X Net operating cash flows 29,200 X 29,200 X 29,200 X Total for Year 1 -89,400 X Total for Years 2-9 (operating cash flow) 29,200 X Residual value 9,100 Total for last year 38,300 X