Out of Eden, Inc. is planning to invest in new manufactoring equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 9,000 units at $42 each. The ne manufacturing equipment will cost 156,000 and is expected to have a 10 year life and 12,000 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 7.00 Direct materials 23.40 Fixed factory overhead-depreciation 1.60 variable factory overhead 3.60 total 35.60 3. On exercise 10-4, what is the net operating cash flows for years 2-9? $378,000 $102,900 $65,100 $53,100 4. On exercise 10-4, what is the net cash flows for the last year? $378,000 $306,000 $65,100 $12,000