Chapter 25- Homework 10 Required information Part 2 of 3 Problem 25-3A Computation of cash flows and net present values with alternative depreciation methods LO P3 The following information applies to the questions displayed below 3.33 points Manning Corporation is considering a new project requiring a $120,000 i value. The project would produce $68,500 of pretax income before depreciation at the end of each of the next six years The company's income tax rte is 40%. In compiling its tax return and computing its income tax payments, the company nvestment in test equipment with no salvage e between the two alternative depreciation schedules shown in the table. (PV of $1, FV of S1. PVA of $1, and Year 1- Year 2 Year 3 Year 4 Year 5 Year 6 12,000 24,000 24,000 24,000 24,000 24,000 38,400 23,040 13,824 13,824 Print $120,000 $120,000 Totals Problem 25-3A Part 3 ine depreciation is used. Use 10% as the discount rate. Net Prev 10 11 0415 Next >