Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

show all work on excel and workout the problems so I know where the values came from please! Operating cash flow strong Tool Partners has

image text in transcribed

show all work on excel and workout the problems so I know where the values came from please!

Operating cash flow strong Tool Partners has been considering purchasing Lathe to replace a fully deprecated lathe that would otherwise lastean The new lathe expected to have a year life and depreciation change of $2,000 1:51,200 in ear 2: 51.900 an year 1: 51,200 in both year and years and 5500 in year. The firm estimate the revenues and expenses excluding deparation and interest for the new and the old lathes to be as shown in the table below. The time subiect 40 tax rate Old lache Expanses excluding depreciation and interest Now the Expenses excluding depreciation and interest $30,000 30.030 30,00 30,000 30.00 Year Revenne 540.000 41.000 42.00 +3.00 44,000 Revenue $1.000 35,00 000 35.000 25.000 25,000 25.000 25.000 aCalculate the operating cash flows associated with each lathe. Notele une to consider the depreciation in year 6.) b. Calculate the operating cash flows resulting from the proposed lathe replacement, c. Depict on a timeline the operating cash flows calculated in part b. Operating cash flow strong Tool Partners has been considering purchasing Lathe to replace a fully deprecated lathe that would otherwise lastean The new lathe expected to have a year life and depreciation change of $2,000 1:51,200 in ear 2: 51.900 an year 1: 51,200 in both year and years and 5500 in year. The firm estimate the revenues and expenses excluding deparation and interest for the new and the old lathes to be as shown in the table below. The time subiect 40 tax rate Old lache Expanses excluding depreciation and interest Now the Expenses excluding depreciation and interest $30,000 30.030 30,00 30,000 30.00 Year Revenne 540.000 41.000 42.00 +3.00 44,000 Revenue $1.000 35,00 000 35.000 25.000 25,000 25.000 25.000 aCalculate the operating cash flows associated with each lathe. Notele une to consider the depreciation in year 6.) b. Calculate the operating cash flows resulting from the proposed lathe replacement, c. Depict on a timeline the operating cash flows calculated in part b

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions