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 1 Data Table Revenue (Click on the icon here Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Year 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 interest) Revenue interest) $30,000 $35,900 $25,800 30,000 35,900 25,800 30,000 35,900 25,800 30,000 35,900 25,800 30,000 35,900 25,800 Mlat nrofit oftar tavan Revenue $38,400 39,400 40,400 41,400 42,400 Enter any number in the edit fields and then click Check Answer. 13 parts remaining