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 $44 each. The new manufacturing equipment will cost $138,100 and is expected to have a 10-year life and a $10,600 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 $7.50 Direct materials 24.40 Fixed factory overhead-depreciation Variable factory overhead 3.80 Total $37.40 1.70 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. bok Show Me How Calculator intermediate calcul LIUTIS VUL Tequired, Uuno Yuur har answers to the nearest duma Natural Foods Inc. Net Cash Flows Year 1 Years 2-9 Last Year $ 138,100 litial investment perating cash flows: Annual revenues Selling expenses $ 330,000 $ 330,000 $ 330,000 -13,200 -13.200 -13,200 Cost to manufacture -276,750 -267,750 -267,750 Net operating cash flows 49,050 $ 49,050 $ 49,050 Total for Year 1 49.050 Total for Years 2-9 (operating cash flow) Residual value 10,600 Total for last year 59,650 Feedback Check My Work For Year 1, subtract the amount to be invested from the operating cash flows (annual revenues less selling expenses subtract the selling expenses and the costs to manufacture from the annual revenues. For Year 10 only, add the resit Check My Work 1 more Check My Work uses remaining. All work saved. opo....docx Lecture Atten....docx A