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 $2,240 in Year 1 $3,584 in Year 2, $2,128 in Year 3, S1,344 in both Year 4 and Year 5, and $560 in Year 6 Tho firm estimates the revenues and expenses (excluding depreciation and interest) for the new and the old tathes 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 fathe 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) Year Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit bofore taxes Taxes Net profit after taxes Operating cash flows S $ S S S $ $ S Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) New Lathe Old Lathe Expenses Expenses (excluding depreciation and (excluding depreciation and Year Revenue interest) Revenue interest) 1 $38,200 $30,200 $36,700 $23.900 2 39,200 30 200 36,700 23,900 3 40,200 30 200 36,700 23,900 4 41,200 30,200 36.700 23,900 5 42,200 30 200 36,700 23,900 Print Done mher in the erit fields and then click Check