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 $2,040 in Year 1; $3,264 in Year 2; $1,938 in Year 3; $1,224 in both Year 4 and Year 5; and $510 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 operatina cash inflows calculated in part b. a. Calculate the operating cash inflows associated with the new lathe below: (Round to the nearest dollar.) Year Data Table Revenue (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Taxes New Lathe Expenses (excluding depreciation and interest) $31,000 31,000 31,000 31,000 31,000 Revenue $39,000 40,000 41,000 42,000 43,000 Net profit after taxes Old Lathe Expenses (excluding depreciation and interest) $23,300 23,300 23,300 23,300 23,300 Revenue $35,700 35,700 35,700 35,700 35,700 Operating cash flows Print Done