Kauai Tools 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 20,000 units at $10 each. The new manufacturing equipment will cost $150,000 and is expected to have a 10-year life and a $30,000 residual value. Selling expenses related to the new product are expected to be 2% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Line Item DescriptionCostDirect labor$ 2.75Direct materials1.80Fixed factory overhead—depreciation0.60Variable factory overhead1.15 Total$6.30 Determine the net cash flows for the first year of the project, Years 2–9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar. Kauai Tools Inc. Net Cash Flows Line Item DescriptionYear 1Years 2-9Last YearInitial investment$Initial investmentOperating cash flows:Annual revenues$Annual revenues$Annual revenues$Annual revenuesSelling expensesSelling expensesSelling expensesSelling expensesCost to manufactureCost to manufactureCost to manufactureCost to manufactureNet operating cash flows$Net operating cash flows$Net operating cash flows$Net operating cash flowsTotal for Year 1$Total for Year 1Total for Years 2–9 (operating cash flow)$Total for Years 2–9 (operating cash flow)Residual valueResidual valueTotal for last year$Total for last year