PLEASE ANSWER ALL PARTS OF THE QUESTION

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 $2,160 in Year 1; $3,456 in Year 2 $2,052 in Year 3; $1,296 in both Year 4 and Year 5, and $540 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 $L Data Table - X Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Taxes Net profit after taxes Operating cash flows Revenue $39,300 40,300 41,300 42,300 43,300 New Lathe Expenses (excluding depreciation and interest) $31,900 31,900 31,900 31,900 31,900 Revenue $34,800 34,800 34,800 34,800 34,800 Old Lathe Expenses (excluding depreciation and interest) $25,600 25,600 25,600 25,600 25,600 Print Done