Operating cash Intlows 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 intows ociated 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. e. Depict on a time in the incremental operating cash inflows calculated in part b. a. Calculate the operating cash infows associated with the new lathe below (Round to the nearest dolar) Year 0 Data Table Revenue Expenses (excluding depreciation and interest) Profit before deprecision and taxes (Click on the icon here in order to copy the contents of the datatable below into a spreadsheet) Depreciation Net profit before taxes Old Lathe Expenses (excluding depreciation and Taxe Year Net profiter aces New Lathe Expenses (excluding depreciation and Interest) $31.700 31,700 31,700 31,700 31,700 Revenue $40.400 41.400 42,400 43.400 44,400 $25,000 26,900 Operating cash flows Revenue $34.000 34.000 34.900 34,900 34 000 26,900 26.900 Print Done Enter any number in the edit fields and then click Check Answer 13 parts Clear All