EX 25-4 Calculate cash flows OBJ. 2 Nature's Way 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 2,500 units at $60 each. The new manufacturing equipment will cost $227,000 and is expected to have a 10-year life and $17,000 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 $ 8.00 Direct materials 22.00 Fixed factory overhead-depreciation 8.40 Variable factory overhead 3.60 Total $42.00 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project