Question: Please help with the empty boxes Nature's Way Inc. is planning to invest in new manufacturing units at $40 each. The new manufacturing equipment will
Nature's Way Inc. is planning to invest in new manufacturing units at $40 each. The new manufacturing equipment will ost $99,100 and is expected to have a 10-year life and $7,600 residual value. Selling product are expe , to be 5% of sales revenue. The cost to manufacture the product indudes the following on a per-unit basis Direct labor Direct materials Fixed factory overhead-depreciation 1.5 Variable factory overhead equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of 6,100 expenses related to the new $6.8 22.3 3.4 Total $34 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 answer to the nearest dollar Nature's Way Inc. Net Cash Flows Year 1 Years 2-9 Last Year Initial investment 99,100 Operating cash flows: 244,000 244,000 244,000 Annual revenues Selling expenses Cost to manufacture 12.20012200 12.300V -307,400/XCana001 x 1 1 C 207,400|X | -207,400| x [-207.00] x Net operating cash flows Total for Year Total for Years 2-9 Residual value Total for last year
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
