Answer:
Net cash flow for year 1 = ($217,400)
Net cash flow for year 2-9 = $39,600
Net cash flow for last year = $56,600
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Explanation:
Year 1 Year 2-9 Last year
Initial investment -$257,000
<em>Annual revenue $120,000 $120,000 $120,000
</em>
<em>Selling expense -$6,000 -$6,000 -$6,000
</em>
<em>Cost of manufacture -$74,400 -$74,400 -$74,400
</em>
Net operating cash flows <u>$39,600</u> <u>$39,600</u> <u>$39,600</u>
Total for year 1 <u>-$217,400</u>
Total for year 2-9 <u>$39,600</u>
Residual value <u>$17,000</u>
Total for last year <u>$56,600</u>