Answer :
Incremental operating cash inflows are the additional cash inflows that a company expects to receive as a result of a particular investment or project. In the case of Strong Tool Company, the incremental operating cash inflows would be the additional cash inflows generated by the new lathe, such as increased production, cost savings, or increased sales.
To calculate the incremental operating cash inflows, we need to consider the cash inflows that are expected to occur as a result of the new lathe. These cash inflows can come from various sources, such as increased production, cost savings, or increased sales. This increase in production and sales would generate additional cash inflows for the company.
Additionally, the new lathe might have more advanced features or be more efficient than the old lathe, leading to cost savings for the company. These cost savings would also contribute to the incremental operating cash inflows. We should exclude any cash inflows that would have occurred regardless of the new lathe purchase.
To know more about Incremental visit:
brainly.com/question/31952995
#SPJ11
