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Score: 0 of 1 pt 6 of 7 (0 complete) P11-13 (similar to) Operating cash inflows Strong Tool Company has been considering purchasing a new

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Score: 0 of 1 pt 6 of 7 (0 complete) P11-13 (similar to) 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 yea Year 3, 61 296 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 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.) 1 $ $ $ Year Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash flows $ $ $ 4 $ $ Enter any number in the edit fields and then click Check Answer 13 parts remaining Clear All o Save hapter 11) HW Score: 0%, 0 of 7 pts 8 of 7 (0 completo) Question Help asing a new life to replace a fully depreciated the 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, 53,456 in Your 2 $2,052 in motes the revenues and expenses excluding depreciation and rest for the new and the old lothes to be as shown in the following table The firm is subject to a 40% tax rate on ordinary income Be sure to corder the depreciation in your ) eplacement mart Round to the nearest oli 7 chapter 11) 6 of 7 (0 complete purchasing a new late to replace a fully depreciated bathe that would otherwise last 5 more years. The new lathe is expected to have a 5-year life and estimates the revenues and expenses (excluding depreciation and interest for the new and the old lathes to be as shown in the following table EL e Be sure to consider the depreciation in year 6.) the replacement ed in part b. below. Round to the nearest dollar) Data Table (Click on the icon here in order to copy the contents of the datatable below into a spreadsheet New Lathe Old Lathe Expenses Expenses (excluding depreciation and (excluding depreciation and Year Revenue interest) Revenue Interest) 1 S41 200 $32,000 $34.900 $24.900 2 42.200 32.000 34,900 24.900 3 43,200 32.000 34,900 24.900 44200 32,000 34,900 2,000 5 45200 32,000 34,900 24.900 Print Done CAL BI

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