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Operating cash inflows Strong Tocl Company has been contidering surchasing a new lathe to replace a fuly depreciated bethe that would otherwise last 5 more

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Operating cash inflows Strong Tocl Company has been contidering surchasing a new lathe to replace a fuly depreciated bethe that would otherwise last 5 more years. The new lathe is expecthe to have a 5-year life and depreclaton cha'ges of $2,280h Year 1;$3,648 in Year 2; $2,166 in Year 3; $1,368 in both Year 4 and Year 5; and $570 in Year 6 . The firm estimatea the revenues and expenses (excludirg depreciation and interest) for the new and the oid lathes to be as shewn in the following table. . The firm is subjoct to a 40% tax raie en ordinary income a. Calculaie the operating cash indows associated with each lathe. (Note: Be suse to oonsider the depreciation in year 6.) b. Calculath the opereling cash inlows resulting frem the propoted lathe replookment. c. Dopict on a time line the inoremental oserating cash inflews calculated in part b. a. Cacoulate the operating cash infows associales with the new lathe below: (Round to the nesest dolar.) New Lathe Old Lathe

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