Please show the process of the caculation. thanks

1.

Incremental operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that will last 5 more years. The new lathe is expected to have a 5year 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. The firm estimates the revenues and expenses (excluding depreciation) for the new and the old lathes to be as shown in the following table a . The rm is subject to a 40% tax rate on ordinary income. 3. Calculate the operating cash inows associated with each Iathe. b. Calculate the incremental (relevant) operating cash inows resulting from the proposed Eathe replacement. c. Depict on a time line the incremental operating cash inflows calculated in part b. [UIICK on [He ICOI'I IOCBIEO on me top-rlgnt corner OT me 0518 tame DSIOW In OFGeT to copy iIS COHIGHIS "\"0 a spreausneet.) New Lathe Old Lathe :1: Expenses Expenses (excluding depreciation (excluding depreciation Year Revenue and interest) Revenue and interest) 1 $40,800 $30,700 $33,800 $23,400 2 41,800 30,700 33,800 23,400 3 42,800 30,700 33,800 23,400 4 43,800 30,700 33,800 23,400 5 44,800 30,700 33,800 23,400 IntegrativeDetermining relevant cash flows Lombard Company is contemplating the purchase of a new high-speed widget grinder to replace the existing grinder. The existing grinder was purchased 2 years ago at an installed cost of $63,400; it was being depreciated straight-line for 5 years, The existing grinder is expected to have a usable life of 5 more years. The new grinder costs $104,600 and requires $5,400 in installation costs; it has a 5-year usable lite and would be depreciated on a straight-line basis. Lombard can currently sell the existing grinder for $69,800 without incurring any removal or cleanup costs. To support the increased business resulting from purchase of the new grinder, accounts receivable would increase by $39,800, inventories by $30,300, and accounts payable by $57,800. At the end of 5 years, the existing grinder would have a market value of zero; the new grinder would be sold to net $28,000 after removal and cleanup costs and before taxes. The rm is subject a 40% tax rate. The estimated earnings before depreciation, interest, and taxes over the 5 years for both the new and the existing grinder are shown in the following table E . a. Calcuiate the initial investment associated with the replacement of the existing grinder by the new one. b. Determine the incremental operating cash inflows associated with the proposed grinder replacement. c. Determine the terminal cash ow expected at the end of year 5 from the proposed grinder replacement. d. Deoict on, a time line the relevant cash ows associated with the proposed grinder. replacement decision. Earnings before depreciation, interest, and taxes Year New grinder 1 $43,200 2 43,200 3 43,200 4 43,200 5 43,200 Existing grinder $25,500 23,500 21 ,500 19,500 17,500