Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated tate that would otherwis last more years The new the expected to have a 5-year life and depreciation charges of $2.160 in Year 1: $1.456 in Year 252,052 in Your 3; 51.206 in both Year and Year 5; and 5840 in Your 8. The firm estimates the revenues and expenses (excluding depreciation and interest) for the new and the old lothes to be as shown in the following the The firm is subject to a 40% tax rate on ordinary income 2. Calculate the operating cash inflows associated with each othe. (Note: Be sure to consider the depreciation in year 6.) b. Calculate the operating cash flows resulting from the proposed the replacement c. Depict on a time in the incremental operating cash inflows calculated in part b. - Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) New Lathe Old Lathe Expenses Expenses (excluding depreciation and (excluding depreciation and Year Revenue Interest) Revenue Interest) 1 $41,600 $30,400 $36,700 $28,600 2 42,600 30,400 36,700 26,600 3 43,600 30,400 36,700 26,600 4 44,600 30,400 36,700 26,600 5 45,600 30,400 36,700 26,600 WN- Print Done Operating cash inflows Strong Tool Company has been considering purchasing a new tathie to replace a fully depreciated latho that would otherwise at more years The new tathe is expected to have a 5-year life and depreciation charges of $2,100 in Year 1: 53458 in Your 2: $2,052 in Year 3: $1.290 in both Year and Year 5, and $540 in Year 6. The firm estimates the revenues and expenses (excluding 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 rato on ordinary income. a. Calculate the operating cash inflows associated with each latho (Note: Be sure to consider the depreciation in year 6.) b. Calculate the operating cash inflows resulting from the proposed lathe replacement. profil atin Data table - (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) New Lathe Old Lathe Expenses Expenses (excluding depreciation and (excluding depreciation and Year Revenue interest) Revenue Interest) 1 $41,600 $30,400 $36,700 $26,600 2 42.600 30,400 36.700 26,600 3 43,600 30,400 36,700 26,600 4 44,600 30,400 36,700 26,600 5 45,600 30,400 36,700 26,600 Print Done