P$3$ Operating cash flows. Strong Tool Partners 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 $$2,000$ in year $1$; $$3,200$ in year $2$; $$1,900$ in year $3$; $$1,200$ in both year $4$ and year $5$; and $$500$ 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 table below. The firm is subject to a $40\%$ tax rate.