all parts please.
Integrativ-Decerning levent cash flow Lonbard Company is contemplating the purchase of a new high-speed widgetginder to replace the existing prinder. The existing grinder was purchased 2 years ago at an installed cost of 564700, it was being would be depreciated under MACRS using as your recovery purled Lombard can cumly sell the living grinder for 9 0 Whet houting any removal ordeanup costs. To support the increased business resulting from purchase of the new grinder accounts receivable would increase by 78.500 metres 5:29.700 and counts payablety 58.500 Ate and at your have a market value of the new gender would be sold to net 52000 erroneal and cleanup costs and below. The fem skjed a 40% tax rate. The estimated earnings before depreciation werest and taxes over the years for to the new and swing prinder are shown in the following table (e contain the cable MACRS depresion perces) Calculate the name associated with the replacement of the engine by the www b. Determine the operating cash flows associated with the proposed grinder replacement Not Be sure to consider the depreciation in yow 6) Determine the cash flow expected at the end you from the proposed grinder replacement d. Depict on a time in the relevant cash flow wated with the proposed grinder replacement decalon Calculate the investment socialed with replacement of the old machine by the new one Calore the wine blow Round to the dar) Cotton 5 Procesional folds Taxon sale of old Cage in working Enter the dels and then contesto This Question: 13 pts Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widget grinder to replace the existing grin depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 more years. The new grinder costs $109,000 a would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $69,000 without incurring any removal or cle. accounts receivable would increase by 539,500 inventories by S29.700, and accounts payable by $58,500. At the end of 5 years, the existing grinder would have a costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes over the 5 years for both the new and the MACRS depreciation percentages) a. Calculate the intal investment associated with the replacement of the existing grinder by the new one, b. Determine the operating cash inflows associated with the proposed grinder replacement (Note: Be sure to consider the depreciation in year 6.) c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement d. Depict on a timeline the relevant cash flows associated with the proposed grinder replacement decision b. Determine the incremental operating cash inflows associated with the proposed replacement. (Note: Be sure to consider the depreciation in year 6) Calculate the cash flows with the old machine below (Round to the nearest dollar) $ $ Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows $ S (Round to the nearest dollar) 2 Year Profit before depreciation and taxes Enter any number in the edit fields and then continue to the next question Integrative--Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widget grinder to re depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 more years. The new gr would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $69.000 without incurr accounts receivable would increase by $39,500 inventories by S29,700, and accounts payable by $58,500. At the end of 5 years, the existing costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes over the 5 years for MACRS depreciation percentages) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement. (Note: Be sure to consider the depreciation in year c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement d. Depict on a timeline the relevant cash flows associated with the proposed grinder replacement decision 2 $ $ Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash indows S $ $ $ Round to the nearest dollar) 3 Year Profit before depreciation and was Depreciation Net profit before taxes $ 5 $ Enter any number in the edities and then continue to the next question FA 2 3 4 % 5 6 & 7 00 Tab W E 0 T Y U ESLK S D F G Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widget grinder depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 more years. The ne would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $69,000 without in accounts receivable would increase by 539,500 inventories by 529,700, and accounts payable by $58,500. At the end of 5 years, the exis costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes over the 5 yeam MACRS depreciation percentages.) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement. (Note: Be sure to consider the depreciation in c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement. d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision Year Profit before depreciation and taxes $ Depreciation Net profit before taxes Taxes 3 $ $ $ $ Net profit after taxes Operating cash inflows S (Round to the nearest dollar) S Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes $ $ 5 Enter any number in the edit fields and then continue to the next question rinder by the new one. mcement. (Note: Be sure to consider the depreciation in year 6.) ed grinder replacement Her replacement decision by the thananana Data Table - X (Click on the icon here into a spreadsheet.) in order to copy the contents of the data table below Year 1 Earnings before depreciation, interest, and taxes New grinder Existing grinder $43,900 $26,900 43,900 24,900 43,900 22,900 43,900 20,900 43,900 18,900 2 3 4 Dosed dollar.) Print Done lon Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new hig depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grind accounts receivable would increase by $39,500, inventories by $29,700, and accounts payable by $58,500. At the costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, a MACRS depreciation percentages.) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement (Note: Be sure to consi c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement. d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision. Year 5 CA Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes CA $ Operating cash inflows CA (Round to the nearest dollar.) Year 6 $ Profit before depreciation and taxes Depreciation Net profit before taxes Taxes S GA $ Enter any number in the Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-spe depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 m would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for accounts receivable would increase by $39,500, inventories by $29,700, and accounts payable by $58,500. At the end costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and tax MACRS depreciation percentages.) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement. (Note: Be sure to consider th c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision. Year $ $ GA Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Net profit after taxes Operating cash inflows $ Calculation the cash flows with the new machine and the incremental cash flows below: (Round to the nearest dollar.) Year $ Profit before depreciation and taxes Depreciation Net profit before taxes Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 more would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $65 accounts receivable would increase by $39,500, inventories by $29,700, and accounts payable by $58,500. At the end of 5 costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes MACRS depreciation percentages.) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement. (Note: Be sure to consider the de c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement. d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision 1 $ $ Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows Incremental cash flows (Round to the nearest dollar.) Year 2 $ Profit before depreciation and taxes Depreciation Not fit hafnre tave ASA Integrative-Determining relevant cash flows Lombard Company depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 more would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $69, accounts receivable would increase by $39,500, inventories by $29,700, and accounts payable by $58,500. At the end of 5 y costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes ou MACRS depreciation percentages.) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement. (Note: Be sure to consider the dep c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement. d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision. 3 CA CA Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows Incremental cash flows (Round to the nearest dollar) GA $ Year 4 GA Profit before depreciation and taxes Depreciation $ Enter any number in the att Integra depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 more would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $69, accounts receivable would increase by $39,500, inventories by $29,700, and accounts payable by $58,500. At the end of 5 y costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes om MACRS depreciation percentages.) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement. (Note: Be sure to consider the dep c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement. d. Depict on a timeline the relevant cash flows associated with the proposed grinder replacement decision. Net pront arter taxes Operating cash inflows Incremental cash flows (Round to the nearest dollar.) 5 A GA Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows A $ $ Incremental cash flows (Round to the nearest dollar.) Integrative-Determining relevant cash flows Lombard depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 more yea would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $69,000 accounts receivable would increase by $39,500, inventories by S29,700, and accounts payable by $58,500. At the end of 5 yean costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes over MACRS depreciation percentages.) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement. (Note: Be sure to consider the depre c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision Year 6 Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows Incremental cash flows $ $ c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement. Calculate the terminal cash flow below: (Round to the nearest dollar) $ Proceeds from sale of new asset Tax on sale of new asset Total proceeds from sale of new asset Enter any number in the edit fields and then continue to the next question Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widge depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 more years would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $69,000 accounts receivable would increase by $39,500, inventories by $29,700, and accounts payable by $58,500. At the end of 5 years costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes over til MACRS depreciation percentages.) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement (Note: Be sure to consider the depreci c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement. d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision Calculate the terminal cash flow below: (Round to the nearest dollar) Proceeds from sale of new asset Tax on sale of new asset Total proceeds from sale of new asset Change in working capital Terminal cash flow d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision. The time line for the incremental operating cash inflows is shown below: (Select the best choice below.) O A. Year 2 3 0 4 6 $14.403 Cash flow - 570,878 OB. Year 0 $22,886 $18,158 $17.978 $20,472 2 3 4 5 Mntegrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widget depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to have a usable life of 5 more years would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $69,000 accounts receivable would increase by S39,500, inventories by $29,700, and accounts payable by $58,500. At the end of 5 years, costs and before taxes. The firm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes over the MACRS depreciation percentages.) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash inflows associated with the proposed grinder replacement. (Note: Be sure to consider the deprecia c. Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision. d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision The time line for the incremental operating cash inflows is shown below: (Select the best choice below.) O A. Year 0 2 5 $22,886 $18,158 $17,978 $20,472 Cash flow - 570,878 $14,403 OB. Year 0 2 3 4 5 6 Cash flow - 570,878 $14,403 $22.886 $18.158 $17,978 $50,372 $2,280 O C. Year 0 2 3 4 5 6 $22,886 $18.158 Cash flow - 570,878 $14.403 OD. Year 0 1 $17.978 $50,372 2 3 4 5 6 Cash flow - $70.878 $14,403 $22 886 $18,158 $17.978 $20,472 $2,280