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Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new ganden toel is expected to
Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new ganden toel is expected to generate additional anal of 5,000 units at $10 each. The new manufacturing equipment will cost $120,000 and is expected to have a 10-year life and a $17,000 residual value Seling exper related to the new product are expected to be 3% 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 $2.50 3.20 2.40 0.90 $9.00 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 outfews. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar Initial investment Operating cash flows Annual revenues Seling expenses Natural Foods Inc. Net Cash Flows Year 1 Years 2-9 Last Year Cost to manufacture fet operating cash flows Total for Year 3 Total for Years 2-9 (operating cash flow) Residual value Accounting numeric field Ned
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