Incremental operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that will last $5$ more years. The new lathe is expected

to have a $5-$year life and depreciation charges of $$2,400$ in Year $1$; $$3,840$ in Year $2$; $$2,280$ in Year $3$; $$1,440$ in both Year $4$ and Year $5.$ The firm estimates the revenues and expenses $($excluding

depreciation$)$ for the new and the old lathes to be as shown in the following table $.$ The firm is subject to a $40\%$ tax rate on ordinary income.

a$.$ Calculate the operating cash inflows associated with each lathe.

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 $b.$