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Please do for years 1,2,3,4,5 and 6 in all questions Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace

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Please do for years 1,2,3,4,5 and 6 in all questions

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 $2,300 in Year 1; $3,680 in Year 2; 52,185 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 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. Data table 1 a. Calculate the operating cash inflows associated with the new lathe below: (Round to the near (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) Year 1 Revenue $ $ $ Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Year 1 2 3 4 5 New Lathe Expenses (excluding depreciation and interest) $28,900 28,900 28,900 28.900 28,900 Revenue $38,800 39,800 40,800 41.800 42,800 $ Old Lathe Expenses (excluding depreciation and interest) $25,700 25,700 25,700 25,700 25.700 Revenue $33.700 33,700 33,700 33,700 33,700 $ Taxes $ Net profit after taxes $ Operating cash flows $ Print Done Activate Windows

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