Marigold Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of 9,700 units at $52 each. The new manufacturing equipment will cost $210,100 and is expected to have a 10-year life and $16,100 residual value. Selling expenses related to the new product are expected to be 4% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Direct labor $8.80 Direct materials 28.90 Fixed factory overhead-depreciation 2.00 Variable factory overhead 4.50 Total $44.20 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. Marigold Inc. Net Cash Flows 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 Previous Next

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Determine Cash Flows
Marigold Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of 9,700
units at $52 each. The new manufacturing equipment will cost $210,100 and is expected to have a 10-year life and $16,100 residual value. Selling expenses related to
the new product are expected to be 4% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis:
Direct labor
$8.80
Direct materials
28.90
Fixed factory overhead-depreciation
2.00
Variable factory overhead
4.50
Total
$44.20
Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. Do not round
your intermediate calculations but, if required, round your final answer to the nearest dollar.
Marigold Inc.
Net Cash Flows
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
Previous
Next
Check My Work 3 more Check My Work uses remaining.
Save and Exit
Submit Assignment for Grading
Email Instructor
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Transcribed Image Text:eBook Show Me How Print Item Determine Cash Flows Marigold Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of 9,700 units at $52 each. The new manufacturing equipment will cost $210,100 and is expected to have a 10-year life and $16,100 residual value. Selling expenses related to the new product are expected to be 4% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Direct labor $8.80 Direct materials 28.90 Fixed factory overhead-depreciation 2.00 Variable factory overhead 4.50 Total $44.20 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. Marigold Inc. Net Cash Flows 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 Previous Next Check My Work 3 more Check My Work uses remaining. Save and Exit Submit Assignment for Grading Email Instructor All work saved.
Fixed factory overhead-depreciation
2.00
Variable factory overhead
4.50
Total
$44.20
Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. D
your intermediate calculations but, if required, round your final answer to the nearest dollar.
Marigold Inc.
Net Cash Flows
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
Previous
Check My Work 3 more Check My Work uses remaining.
Save and Exit
Submit Assignment fe
Email Instructor
All work saved.
Transcribed Image Text:Fixed factory overhead-depreciation 2.00 Variable factory overhead 4.50 Total $44.20 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. D your intermediate calculations but, if required, round your final answer to the nearest dollar. Marigold Inc. Net Cash Flows 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 Previous Check My Work 3 more Check My Work uses remaining. Save and Exit Submit Assignment fe Email Instructor All work saved.
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