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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 $2,220 in Year 1; $3,552 in Year 2; $2,109 in Year 3; $1,332 in both Year 4 and Year 5, and $555 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. i Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year Revenue $38,200 39,200 40,200 41,200 42,200 New Lathe Expenses (excluding depreciation and interest) $29,100 29,100 29,100 29,100 29,100 Revenue $33,000 33,000 33,000 33,000 33,000 Old Lathe Expenses (excluding depreciation and interest) $24,100 24,100 24,100 24,100 24,100 Print Done