Document1 Word Page 1 of 1 words Homework: Problem Set 3: Chapters 9, 10, 11, 13, 15, and 16 Score: 0 of 15 pts P11-19 (similar to) Save 30t 9 (7 complete ) HW Score: 58 5796, 58.57 of 100 pts Question Help Incremental operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that wil last 5 more years. The new lathe is expected to have a 5-year life and depreciation charges of $2,260 in Year 1; 3,616 in Yea 2; $2,147 in Year 3 S1,356 in both Year 4 and Year 5 and $565 in Year 6. The fim estimates the revenues and expenses (excluding depreciation) for the new and the old lathes to be as shown in the following tableThe firm is subject to a 40% tax rate on ordinary income a. Calculate the operating cash infiows associated with each lathe. (Note: Be sure to consider the depreciation in year 6) b. Calculate the incremental (relevant) operating cash inflows resulting from the proposed lathe replacement. c. Depict on a time line 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 Data Table Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash flows S (Click on the icon Google on the top-right corner of the data table beloww in order to copy its contents into a spreadsheet.) New Lathe Old Lathe Expenses (excluding depreciation and interest) S29.400 29,400 29,400 29.400 29,400 Expenses (excluding depreciation and interest) $26,300 26,300 26,300 26,300 26,300 Year Revenue S39,200 40,200 41,200 42,200 43,200 Revenue $33,800 33,800 33,800 33,800 33,800 Enter any number in the edit tields and then click Check Answer Print Done remaining O Type here to search 4:41 AM 11/28/2017