Operating cash flows Strong Tool Company has been considering purchasing a new late 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 $2.060 in You 1: $3,296 in Year 2, 81,957 in Year 3: $1236 in both Year 4 and Year 5; and $515 in Year 6. The firm estimates the revenues and expenses (excluding depreciation and interest) 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. a. Calculate the operating cash flows associated with each lathe. (Note: Be sure 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 incremental operating cash flows calculated in part b. a. Calculate the operating cash flows atrociated with the new tathe below (Round to the newest dollar) Year 1 Revenue $ Expenses (excluding depreciation and interest $ Profit before depreciation and taxes $ Depreciation Net profit before taxes S Taxes $ Net profit after taxes s $ .. S (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 1 2 3 4 5 Revenue $40,800 41,800 42,800 43,800 44,800 New Lathe Expenses (excluding depreciation And interest) $29,200 29,200 29,200 29,200 29,200 Revenue $33,400 33,400 33,400 33,400 33,400 Old Lathe Expenses (excluding depreciation and interest) $25,700 25,700 25,700 25,700 25,700