Operating cash inflowsStrong 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 $2,200 in Year 1; $3,520 in Year 2; $2,090 in Year 3; $1,320 in both Year 4 and Year 5; and $550 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

New Lathe			Old Lathe
Year	Revenue	Expenses (excluding depreciation andinterest)		Revenue	Expenses (excluding depreciation andinterest)
1	$40,100	$31,900		$33,600	$27,000
2	41,100	31,900		33,600	27,000
3	42,100	31,900		33,600	27,000
4	43,100	31,900		33,600	27,000
5	44,100	31,900		33,600	27,000

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.) (Round to the nearest dollar.)

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.