OBJ.2 EX 26-4 Calculate cash flows 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 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 Direct materials Fixed factory overhead-depreciation Variable factory overhead $ 8.00 22.00 8.40 3.60 $42.00 Total Determine the net cash flows for the first year of the project, Years year of the project. m ine tr rer cah oes fer h fi project, Years 2-9), and for the lst 2-9, and for the last