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------------------------------------------------ Determine the net cash flows for Kauai Tools Inc. as it invests in new manufacturing equipment to produce a new garden tool.

**Project Overview:**
- **Additional Annual Sales:** 20,000 units at $10 each
- **Manufacturing Equipment Cost:** $150,000
- **Equipment Life:** 10 years
- **Residual Value:** $30,000
- **Selling Expenses:** 2% of sales revenue

**Cost to Manufacture (per unit):**
- Direct labor: $2.75
- Direct materials: $1.80
- Fixed factory overhead (depreciation): $0.60
- Variable factory overhead: $1.15
- Total Manufacturing Cost per unit: $6.30

**Cash Flow Analysis:**

1. **Initial Investment:**
- Equipment Cost: $150,000

2. **Operating Cash Flows:**
- **Annual Revenues:** 20,000 units x $10 = $200,000
- **Selling Expenses:** 2% of $200,000 = $4,000
- **Manufacturing Costs:** 20,000 units x $6.30 = $126,000
- **Net Operating Cash Flows (Year 1):** $200,000 - $4,000 - $126,000 = $70,000

3. **Net Operating Cash Flows (Years 2–9):**
- **Annual Operating Cash Flow:** $70,000 (same as Year 1)

4. **Last Year Cash Flows:**
- **Residual Value:** $30,000
- **Net Operating Cash Flow for Last Year:** $70,000 + $30,000 = $100,000

**Summary of Net Cash Flows:**
- **Year 1 Total:** Initial investment ($150,000) + Operating cash flow ($70,000) = Net cash flow for Year 1
- **Years 2–9 Total (per year):** $70,000
- **Last Year Total:** $100,000

**Instructions:** 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.