Natural Foods 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 5 000 units at 18 each The new manufacturing equipment will cost 120 000 and is expected to have a 10 year life and a 17 000 residual value Selling expenses 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 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 outflows Do not round your intermediate calculations but if required round your final answers to the nearest dollar Natural Foods Inc Net Cash Flows 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 operating cash flow Residual value Total for last year 2 50 3 20 2 40 0 90 9 00 Feedback Year 1 Years 2 9 Last Year Check My Work For Year 1 subtract the amount to be invested from the operating cash flows annual revenues less selling expenses less cost to manufacture For Years 2 10 subtract the selling expenses and the costs to manufacture from the annual