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 5. 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: (Rol - X Data Table Year 1 Revenue $ 38700 $ 28100 (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) $ 66800 Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes $ $ Taxes $ Year 1 2 3 4 5 New Lathe Expenses (excluding depreciation and interest) $28,100 28,100 28,100 28,100 28,100 Revenue $38,700 39,700 40,700 41,700 42,700 Not nrofit after tavan C Old Lathe Expenses (excluding depreciation and interest) $25,900 25,900 25,900 25,900 25,900 Revenue $35,300 35,300 35,300 35,300 35,300 Enter any number in the edit fields and then click Check Answer. 13 parts remaining Print Done