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Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that would otherwise last 5 more years. The new lathe is expected to have a 5-year life and depreciation charges of $2.040 in Year 1: $3,264 in Year 2: $1,938 in Year 3, S1,224 in both Year 4 and Year 5; and $510 in Year 6. The firm estimates the revenues and expenses (excluding depreciation and interest) for the new and the old lathes to be as shown in the following table D. The firm is subject to a 40% tax rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider the depreciation in year 8.) b. Calculate the operating cash inflows resulting from the proposed fathe replacement c. Depict on a timeline the incremental operating cash inflows calculated in part b. a. Calculate the operating cash inflows associated with the new lathe below (Round to the nearest dollar) Year Revenue Expenses (excluding depreciation and interest) $ Profit before depreciation and taxes $ Depreciation $ Net profit before taxes $ Taxes $ Net profit after taxes $ $ Operating cash flows $ wer aver AD Data Table - (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year 1 2 3 4 5 Revenue $38,500 39,500 40,500 41,500 42,500 New Lathe Expenses (excluding depreciation and Interest) $28,200 28,200 28,200 28,200 28,200 Revenue $37,000 37,000 37,000 37,000 37,000 Old Lathe Expenses (excluding depreciation and interest) $25,600 25,600 25,600 25,600 25,600 Print Done aber in the edit fields and then click Check