### Gardeneer inc is planning to invest 184000 in a new garden

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##### Reference no: EM13598066

Gardeneer Inc. is planning to invest \$184,000 in a new garden tool that is expected to generate additional sales of 7,500 units at \$38 each. The \$184,000 investment includes \$54,000 for initial launch-related expenses and \$130,000 for equipment that has a 10-year life and a \$17,500 residual value. Selling expenses related to the new product are expected to be 6% 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 2-9, and for the last year of the project.

Insert cash outflows in parentheses. For example an outflow of 45,000 would be entered as (45000).

Year 1 Years 2 - 9 Last Year
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 \$
Residual value \$
Total for last year \$

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