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Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fufly deprecialod lache liat would ctherwso last 5 more

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Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fufly deprecialod lache liat would ctherwso last 5 more years. The new lathe is expected to have a 5 -year life and depreciation chargos of $2,380 in Year 1; $3,808 in Year 2 ; $2,281 in Year 3:$1,428 in both Year 4 and Yoi? 5 , and 5595 in Year 6 . The firm estimates the revenues and expenses (exiluding depreciation and interest) for the new and the old lathes to be ars shoun in the foliowing table Etr. The firn is subject to a 40% tax rate on crdinary income. a. Calbulate the operating cash inflows associated wth each Lathe. (Notes Be sure to consider the depreciation in year 6 ) b. Caiculate the operating cash infiows resiling from the proposed lathe replacenent. c. Depict on a lime line the incremental operating cada inflows calculated in part b. a. Calcartate the oporating cash infiow5 associaled with the now lathe below; (Round to the newest dollar) Data table (Click on the icon here D, in order to copy the contents of the data table below into a spreadsheet.)

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