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…

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 7.00Direct materials 23.40Fixed factory overhead-depreciation 1.60variable factory overhead 3.60total 35.603. On exercise 10-4, what is the net operating cash flows for years 2-9? $378,000$102,900$65,100$53,1004. On exercise 10-4, what is the net cash flows for the last year? $378,000$306,000$65,100$12,000

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…

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