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Manning Corporation is considering a new project requiring a $ 1 1 0 , 0 0 0 investment in test equipment with no salvage value.

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Manning Corporation is considering a new project requiring a $110,000 investment in test equipment with no salvage value. The project would produce $70,500 of pretax income before depreciation at the end of each of the next six years. The company's income tax rate is 30%. 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. (PV of $1, FV of $1, PVA of $1, and FVA of $1)(Use appropriate factor(s) from the tables provided.)
\table[[,\table[[Straight-Line],[Depreciation]],\table[[MACRS],[Depreciation*]]],[Year 1,$11,000,$22,000
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