Operating cash inflows Strong Tool Company has been considering purchasing a new lathe lo replace a fully depreciated lathe that would otherwise last 5 more years. The new lathe is expecled to have a 5-year life and depreciation charges of $2,140 in Year 1; 53,424 in Year 2: $2,033 in Year 3; $1,284 in both Year 4 and Year 5; and $535 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 timeline 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 1 Revenue $ - X Data table $ $ Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Taxes (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) $ $ $ Net profit after taxes Year $ $ $ $ 1 New Lathe Expenses (excluding depreciation and interest) $28,700 28,700 28,700 28,700 28,700 Revenue $41,800 42,800 43,800 44,800 45,800 Operating cash flows Old Lathe Expenses (excluding depreciation and interest) $24.900 24,900 24,900 24,900 24,900 2 3 Revenue $33,800 33,600 33,600 33,600 33,600 4 5