Manning Corporation is considering a new project requiring a $110,000 investment in test equipment with no salvage value. The project would produce $72,500 of pretax income before depreciation at the end of each of the next six years. The Company's income tax rate is 36%. In compiling its tax return and computing its income tax payments, the company can choose between the two alternative depreciation schedules shown in the table. (FV of $1, PV of $1, FVA of $1 and PVA of $1) (Use MACRS) (Use appropriate factor(s) from the tables provided.) Straight-Line MACRS Depreciation Depreciation 11,000 22,000 Year 1 22,000 35,200 Year 2 22,000 21.120 Year 3 Year 4 22,000 12,672 Year 5 22,000 12,672 11,000 6,336 Year 6 $110,000 110,000 Totals