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 new lathe is expected to have a 5-year life and depreciation charges of $2.260 in Year 1; $3,616 in Year 2: $2,147 in Year 3; $1,356 in both Year 4 and Year 5 and $565 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 rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider the depreciation in year 6.) b. Calculate the operating cash inflows resulting from the proposed lathe replacement c. Depict on a time line the incremental operating cash inflows calculated in part b a. Calculate the operating cash inflows associated with the new lathe below: (Round to the nearest dollar.) Year Revenue $ Expenses (excluding depreciation and interest) $ Profit before depreciation and taxes $ Depreciation $ Net profit before taxes $ Taxes Net profit after taxes Operating cash flows (Round to the nearest dollar.) $ $ Year Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation $ $ $ $ (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) New Lathe Expenses (excluding depreciation and interest) Old Lathe Expenses (excluding depreciation and interest) Year Revenue Revenue 1 $38,500 $31,100 $35,000 $24,700 2345 39,500 31,100 35,000 24,700 40,500 31,100 35,000 24,700 41,500 31,100 35,000 24,700 42,500 31,100 35,000 24,700