Natures Way Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of 9,500 units at $50 each. The new manufacturing equipment will cost $195,500 and is expected to have a 10-year life and $15,000 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		$8.5
Direct materials		27.8
Fixed factory overhead-depreciation		1.9
Variable factory overhead		4.3
	Total	$42.5

Determine the net cash flows for the first year of the project, Years 29, 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 answer to the nearest dollar.

Natures Way Inc.
Net Cash Flows
	Year 1	Years 2-9	Last Year
Initial investment	_______
Operating cash flows:	______	____	_____
Annual revenues	$______	$________	$________
Selling expenses	________	______	_______
Cost to manufacture	________	_____	________
Net operating cash flows	$________	$_____	$________
Total for Year 1	$_______
Total for Years 2-9		$_____
Residual value			_____
Total for last year			$______