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NEED ANSWERS ASAP Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that would otherwise
NEED ANSWERS ASAP
Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that would otherwise last 5 more years. The now lathe is expectod to have a 5-year life and depreciation charges of $2,200 in Year 1; $3,520 in Year 2; $2,090 in Year 3; $1,320 in both Year 4 and Year 5; and $550 in Year 6. The firm estimates the revenues and expenses (excluoing depreciation and interest) 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. (Note: Be sure to consider the depreciation in year B.) b. Calculate the operating cash inflows resulting from the proposed lathe replacement, c. Depict on a time line the incremental operating cash infows calculated in part b. a. Calculase the cperaling eash inflows associated with the new lathe below: (Round to the nearest dollar.) Data table Flick on the icon here D in orser to copy the conteris of the data table below inte a spreadsheet.) Step by Step Solution
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