cash flows Lombard Company is contemplating the purchase of a new high speed widget grinder to replace the existing grinder The existing grinder was purchased 2 years age at an cost of $58,400, it was being depreciated under MACRS using a 5 costs, it has a 5-year usable ife and year recovery period The existing grinder is expected nstaled to have a usable He of 5 more years. The new grinder costs $103,400 and requires $4,900 in installation would be depreciated under MACRS using a 5-year purchase of the new grinder, accounts recelvable would increase by $39,3900. inventores by $30,500, and accounts payable by $57,800 At the end of 5 years, the would be sold to net S28 200 aher removal and deanup recovery period Lombard can currenty sell the existing grinder for $70,000 without incurring any removal or cleanup costs To support the increased business resuting from existing grinder would have a market value of zero, the new g costs and before taxes The firm issubiect a 40% tax rate The estmated earings before deprecilon merest and taxes over the 5 years for both the rew and the gider are shown ite following table (Tablecontars the applicable MACRS depreciation percentages ) a. Calculate the nial 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 time ine the relevant cash fows associated with the proposed grinder replacement decision a. Calculate the neal vestment associated with replacement of the old machine by the new one Calculate the iniial investment balow (Round to the nearest dollar) Cost of new asset Installation costs Total cost of new assel Proceeds from sale of old asse Tax on sale of old asset otal proceeds, sale of old Change in working capita nter any rter in the een felds and her, continue 10the next question novo 5 6 8 1 2 3 4 7 8 O P a W E R T Y U ga 5-year recovery penod. The existing grinder is expected to have a usable life of costs, it has a 5-year usable life and would be depreciated under MACRS using a 5 year recovery period Lombard can currently sell the existing grinder for $70,000 without incurring purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable by $57,800. At the would be sold to net S28200 after removal and cleanup costs and before taxes The firm is sut ed a 40% tax rate The estimated earn ngs befr grinder are shown in the following table (Tablecontains the applicable MACRS depreciation percentages ) a. Calculate the iniial investment associated with the replacement of the existing grinder by the new one b. Determine the operating cash infows associated with the proposed grinder replacement (Note: Be sure to consider the depreciation in year 6) Determine the terminal cash flow expected at the end of year 5 from the proposed girder replacement d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision. Tax on sale of old asset Total proceeds, sale of old asset Change in working capital Initial investment b. Determine the incremental operating cash inflows Calculate the cash flows with the old machine below associated with the proposed replacement (Note Be sure to consider the depreciation in year 6 (Round to the nearest dollar) Year Profit before depreciation and taxes Enter any number in the edit fields and then continue to the next question 2 3 4 5 6 7 8 would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $70,000 with purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable by $57 would be sold to net $28,200 after removal and deanup costs and before taxes The firm is sub ed a 40% tax rate The estimated ea ginder are shownin the following table (Tablecontains the applicable MACRS depreciation percentages a. Calculate the inital investment associated with the replacement of the existing grinder by the new one b. Determine the operating cash infiows associated with the proposed grinder replacement. (Note: Be sure to consider the depreciatic 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. Profit before depreciation and taxes Depreciation Net profit before taxes Net proit after taxes Operating cash inflows Round to the nearest dolar ) Enter any number in the edit fields and then continue to the next question 2 3 4 56 7 8 9 costs, it has a 5-year usable le and for $7 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payab would be sold to net S28200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate The est grinder are shown in the following table(Tablecontains the applicable 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 d Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash in lows Round to the nearest dollar ) Enter any number in the edit fields and then continue to the next question. 2 3 4 5 6 A S D F G HJ Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed w cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $70 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable would be sold to net S28200 after removal and deanup costs and before taxes The firm is subject a 40% tax rate The estim grinder are shown in the following table Tablecontains the applicable 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. Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows Round to the nearest dollar) Year nter any number in the edit fields and then continue to the next question 2 3 4 5 6 Q W E R T Y U Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widges cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period The existing grinder is expected to have costs, it has a 5 year usable He and would be depreciated under MACRS using a 5-year recovery period Lombard can currently sell the existing grinder for $70,000 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable by $ would be sold to net S28200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate The estimated grinder are shown in the following table (Tablecontains the applicable 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. Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows Round to the nearest dollar) Enter any number in the edit fields and then continue to the next question 2 1 2 3 4 5 67 8 Q W E R T Y U purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable by would be sold to net S28200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate The estimat grinder are shown in the following table(Tablecontains the applicable MACRS depreciation percentages) a. Calculate the inibial 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 Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows Round to the nearest dollar.) nter any number in the edit fields and then continue to the next question enovO 2 3 4 5 6 7 A S D F G H Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-spe cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expecte costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $ purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts paya would be sold to net $28,200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate The e grinder are shown in the following table (Table B contains the applicable MACRS depreciation percentages) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one 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 Round to the nearest dollar.) Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Net profit after taxes Operating cash inflows Enter any number in the edit fields and then continue to the next question 8 1 2J 3 45 6 78 costs, it has a 5-year usable lide and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $70 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable would be sold to net S28200 after removal and cleanup costs and before taxes The firm is sulged a 40% tax rate The esti grider are shown in the following table (Tablecontains the applicable MACRS depreciation percentages. a. Calculate the iniial investment associated with the replacement of the existing grinder by the new one. 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 Rlows associated with the proposed grinder replacement decision. 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 Taxes Net profit after taxes Operating cash inflows Enter any number in the edit fields and then continue to the next question Lenovo q. 2 3 4 5 6 Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed cost of S58,400, t was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expected it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $7 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payab would be sold to net $28,200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate. The es grinder are sho n in the following table(Tablecontains the applicable MACRS depreciation percentages a. Calculate the inibal investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash infows associated with the proposed grinder replacement. (Note: Be sure to consider the 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 Net profit after taxes Operating cash inflows Incremental cash flows Round to the nearest dollar) Enter any number in the edit fields and then continue to the next question Esc 2 3 4 5 Integrative Determining relevant cash flows Lombard Company is contemplating purchase of a new high cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is ex costs, it has a 5-year usable life and the ould be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinde urchase of the new would be sold to net S28 200 after removal and deanup costs and before taxes The firm is subject a 40% tax rate. vable would increase 39,900, inventories by $30,500, and a grinder, acco unts recei grder are shown in the following table(Tablecontains the applicable 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 consic 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 Net profit after taxes Operating cash inflows Incremental cash flows Round to the nearest dollar) nter any number in the edit fields and then continue to the next question d+ 1 2 3 4 Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period The existing grinder is exp costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts would be sold to net S28200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate grinder are shown in the following table EB (Table contains the applicable 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 conside 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 Net profit after taxes Operating cash inflows Incremental cash flows nter any number in the edit fields and then continue to the next question Esc FS 1 2 3 4 567 Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is exp costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts would be sold to net $28,200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate. grinder are shown in the following table (Tab contains the applicable MACRS depreciation percentages a. Calculate the inital 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 conside 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. 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) Enter any number in the edit fields and then continue to the next question FB 2 3 4 10 of 50 (46 Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-sp cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expect costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts pay would be sold to net $28,200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate The grinder are shown in the following table(Table contains the applicable MACRS depreciation percentages a. Calculate the inibal 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 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 Enter any number in the edit fields and then continue to the next question Esc FS 4 osts, it has a 5-year usable lite and ould be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinde urchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and account would be sold to net $28,200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate ginder are shown in the following table (Tablecontains the applicable 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 consic 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) Enter any number in the edit fields and then continue to the next question FS 8a 1 2 3 4567 Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-spe cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expecte costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for S purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts pay would be sold to net S28200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate The grinder are shown in the following table (Tablecontains the applicable 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. O A. Year 2 Cash flow-$67,687 $13,586 $21,619 $17,188 $16,990 $19,358 $2,166 B. Year Cash flow-567,687 $13,586 $21,619 $17,188 $16,990 $51,044 $2.166 O C. Year Cash flow-$67,687 $13,586 $21,619 $17.188 $16,990 $51,044 OD, Year Enter any number in the edit fields and then continue to the next question cash flows Lombard Company is contemplating the purchase of a new high speed widget grinder to replace the existing grinder The existing grinder was purchased 2 years age at an cost of $58,400, it was being depreciated under MACRS using a 5 costs, it has a 5-year usable ife and year recovery period The existing grinder is expected nstaled to have a usable He of 5 more years. The new grinder costs $103,400 and requires $4,900 in installation would be depreciated under MACRS using a 5-year purchase of the new grinder, accounts recelvable would increase by $39,3900. inventores by $30,500, and accounts payable by $57,800 At the end of 5 years, the would be sold to net S28 200 aher removal and deanup recovery period Lombard can currenty sell the existing grinder for $70,000 without incurring any removal or cleanup costs To support the increased business resuting from existing grinder would have a market value of zero, the new g costs and before taxes The firm issubiect a 40% tax rate The estmated earings before deprecilon merest and taxes over the 5 years for both the rew and the gider are shown ite following table (Tablecontars the applicable MACRS depreciation percentages ) a. Calculate the nial 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 time ine the relevant cash fows associated with the proposed grinder replacement decision a. Calculate the neal vestment associated with replacement of the old machine by the new one Calculate the iniial investment balow (Round to the nearest dollar) Cost of new asset Installation costs Total cost of new assel Proceeds from sale of old asse Tax on sale of old asset otal proceeds, sale of old Change in working capita nter any rter in the een felds and her, continue 10the next question novo 5 6 8 1 2 3 4 7 8 O P a W E R T Y U ga 5-year recovery penod. The existing grinder is expected to have a usable life of costs, it has a 5-year usable life and would be depreciated under MACRS using a 5 year recovery period Lombard can currently sell the existing grinder for $70,000 without incurring purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable by $57,800. At the would be sold to net S28200 after removal and cleanup costs and before taxes The firm is sut ed a 40% tax rate The estimated earn ngs befr grinder are shown in the following table (Tablecontains the applicable MACRS depreciation percentages ) a. Calculate the iniial investment associated with the replacement of the existing grinder by the new one b. Determine the operating cash infows associated with the proposed grinder replacement (Note: Be sure to consider the depreciation in year 6) Determine the terminal cash flow expected at the end of year 5 from the proposed girder replacement d. Depict on a time line the relevant cash flows associated with the proposed grinder replacement decision. Tax on sale of old asset Total proceeds, sale of old asset Change in working capital Initial investment b. Determine the incremental operating cash inflows Calculate the cash flows with the old machine below associated with the proposed replacement (Note Be sure to consider the depreciation in year 6 (Round to the nearest dollar) Year Profit before depreciation and taxes Enter any number in the edit fields and then continue to the next question 2 3 4 5 6 7 8 would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $70,000 with purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable by $57 would be sold to net $28,200 after removal and deanup costs and before taxes The firm is sub ed a 40% tax rate The estimated ea ginder are shownin the following table (Tablecontains the applicable MACRS depreciation percentages a. Calculate the inital investment associated with the replacement of the existing grinder by the new one b. Determine the operating cash infiows associated with the proposed grinder replacement. (Note: Be sure to consider the depreciatic 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. Profit before depreciation and taxes Depreciation Net profit before taxes Net proit after taxes Operating cash inflows Round to the nearest dolar ) Enter any number in the edit fields and then continue to the next question 2 3 4 56 7 8 9 costs, it has a 5-year usable le and for $7 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payab would be sold to net S28200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate The est grinder are shown in the following table(Tablecontains the applicable 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 d Determine the terminal cash flow expected at the end of year 5 from the proposed grinder replacement Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash in lows Round to the nearest dollar ) Enter any number in the edit fields and then continue to the next question. 2 3 4 5 6 A S D F G HJ Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed w cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expected to costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $70 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable would be sold to net S28200 after removal and deanup costs and before taxes The firm is subject a 40% tax rate The estim grinder are shown in the following table Tablecontains the applicable 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. Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows Round to the nearest dollar) Year nter any number in the edit fields and then continue to the next question 2 3 4 5 6 Q W E R T Y U Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widges cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period The existing grinder is expected to have costs, it has a 5 year usable He and would be depreciated under MACRS using a 5-year recovery period Lombard can currently sell the existing grinder for $70,000 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable by $ would be sold to net S28200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate The estimated grinder are shown in the following table (Tablecontains the applicable 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. Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows Round to the nearest dollar) Enter any number in the edit fields and then continue to the next question 2 1 2 3 4 5 67 8 Q W E R T Y U purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable by would be sold to net S28200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate The estimat grinder are shown in the following table(Tablecontains the applicable MACRS depreciation percentages) a. Calculate the inibial 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 Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash inflows Round to the nearest dollar.) nter any number in the edit fields and then continue to the next question enovO 2 3 4 5 6 7 A S D F G H Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-spe cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expecte costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $ purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts paya would be sold to net $28,200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate The e grinder are shown in the following table (Table B contains the applicable MACRS depreciation percentages) a. Calculate the initial investment associated with the replacement of the existing grinder by the new one 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 Round to the nearest dollar.) Year Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Net profit after taxes Operating cash inflows Enter any number in the edit fields and then continue to the next question 8 1 2J 3 45 6 78 costs, it has a 5-year usable lide and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $70 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payable would be sold to net S28200 after removal and cleanup costs and before taxes The firm is sulged a 40% tax rate The esti grider are shown in the following table (Tablecontains the applicable MACRS depreciation percentages. a. Calculate the iniial investment associated with the replacement of the existing grinder by the new one. 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 Rlows associated with the proposed grinder replacement decision. 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 Taxes Net profit after taxes Operating cash inflows Enter any number in the edit fields and then continue to the next question Lenovo q. 2 3 4 5 6 Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed cost of S58,400, t was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expected it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for $7 purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts payab would be sold to net $28,200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate. The es grinder are sho n in the following table(Tablecontains the applicable MACRS depreciation percentages a. Calculate the inibal investment associated with the replacement of the existing grinder by the new one. b. Determine the operating cash infows associated with the proposed grinder replacement. (Note: Be sure to consider the 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 Net profit after taxes Operating cash inflows Incremental cash flows Round to the nearest dollar) Enter any number in the edit fields and then continue to the next question Esc 2 3 4 5 Integrative Determining relevant cash flows Lombard Company is contemplating purchase of a new high cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is ex costs, it has a 5-year usable life and the ould be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinde urchase of the new would be sold to net S28 200 after removal and deanup costs and before taxes The firm is subject a 40% tax rate. vable would increase 39,900, inventories by $30,500, and a grinder, acco unts recei grder are shown in the following table(Tablecontains the applicable 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 consic 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 Net profit after taxes Operating cash inflows Incremental cash flows Round to the nearest dollar) nter any number in the edit fields and then continue to the next question d+ 1 2 3 4 Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period The existing grinder is exp costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts would be sold to net S28200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate grinder are shown in the following table EB (Table contains the applicable 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 conside 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 Net profit after taxes Operating cash inflows Incremental cash flows nter any number in the edit fields and then continue to the next question Esc FS 1 2 3 4 567 Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is exp costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts would be sold to net $28,200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate. grinder are shown in the following table (Tab contains the applicable MACRS depreciation percentages a. Calculate the inital 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 conside 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. 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) Enter any number in the edit fields and then continue to the next question FB 2 3 4 10 of 50 (46 Integrative Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-sp cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expect costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts pay would be sold to net $28,200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate The grinder are shown in the following table(Table contains the applicable MACRS depreciation percentages a. Calculate the inibal 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 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 Enter any number in the edit fields and then continue to the next question Esc FS 4 osts, it has a 5-year usable lite and ould be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinde urchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and account would be sold to net $28,200 after removal and cleanup costs and before taxes. The firm is subject a 40% tax rate ginder are shown in the following table (Tablecontains the applicable 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 consic 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) Enter any number in the edit fields and then continue to the next question FS 8a 1 2 3 4567 Integrative-Determining relevant cash flows Lombard Company is contemplating the purchase of a new high-spe cost of $58,400, it was being depreciated under MACRS using a 5-year recovery period. The existing grinder is expecte costs, it has a 5-year usable life and would be depreciated under MACRS using a 5-year recovery period. Lombard can currently sell the existing grinder for S purchase of the new grinder, accounts receivable would increase by $39,900, inventories by $30,500, and accounts pay would be sold to net S28200 after removal and cleanup costs and before taxes The firm is subject a 40% tax rate The grinder are shown in the following table (Tablecontains the applicable 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. O A. Year 2 Cash flow-$67,687 $13,586 $21,619 $17,188 $16,990 $19,358 $2,166 B. Year Cash flow-567,687 $13,586 $21,619 $17,188 $16,990 $51,044 $2.166 O C. Year Cash flow-$67,687 $13,586 $21,619 $17.188 $16,990 $51,044 OD, Year Enter any number in the edit fields and then continue to the next