Spring Colours Inc. is planning to invest \($230,000\) in a new garden product that is expected to generate additional sales of 12,500 units at \($16\) each. The \($230,000\) investment includes \($55,000\) for initial launch-related expenses and \($175,000\) for equipment that has a 15-year life and a \($25,000\) 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 per unit costs:

Determine the net cash flows for the first year of the project, years 2-14, and for the last year of the project.

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Direct labor Direct materials Fixed factory overhead-depreciation Variable factory overhead Total $ 4.00 6.50 0.80 1.50 $12.80