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 $2,300 in Year 1; $3,680 in Year 2; $2,185 in Year 3;$1,380 in both Year 4 and Year 5; and $575 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 infiows resulting from the proposed lathe replacement. c. Depict on a time line the incremental operating cash inflows calculated in part b. Data table (Click on the icon here p in order to copy the contents of the data table below into a spreadsheet.) 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 $2,300 in Year 1; $3,680 in Year 2; $2,185 in Year 3;$1,380 in both Year 4 and Year 5; and $575 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 infiows resulting from the proposed lathe replacement. c. Depict on a time line the incremental operating cash inflows calculated in part b. Data table (Click on the icon here p in order to copy the contents of the data table below into a spreadsheet.)