Integrative$-$Determining relevant 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 ago at an installed cost of $$57,500$; it was being depreciated straight$-$line for $5$ years. The existing grinder is expected to have a usable life of $5$ more years. The new grinder costs

$$100,400$ and requires $$5,100$ in installation costs; it has a $5-$year usable life and

would be depreciated on a straight$-$line basis. Lombard can currently sell the existing grinder for $$70,900$ without incurring any removal or cleanup costs. To support the increased business resulting

from purchase of the new grinder, accounts receivable would increase by $$39,700,$ inventories by $$30,600,$ and accounts payable by $$58,700.$ At the end of $5$ years, the existing grinder would have a

market value of zero; the new grinder would be sold to net $$29,200$ after removal and cleanup 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 existing grinder are shown in the following table

a$.$ Calculate the initial investment associated with the replacement of the existing grinder by the new one.

b$.$ Determine the incremental operating cash inflows associated with the proposed grinder replacement.

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.