Manning Corporation is considering a new project requiring a $90,000 investment in test equipment with no salvage value. The project would produce $74,000 of pretax income before depreciation at the end of each of the next six years. The companys income tax rate is 34%. 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.)

Manning Corporation is considering a new project requiring a $90,000 investment in test equipment with no salvage value. The project would produce $74,000 of pretax income before depreciation at the end of each of the next six years. The company's income tax rate is 34%. In compiling its tax return and computing its income tax payments, the company can choose between the two alternative depreciation schedules shown in (FV of $1, PV of $1, FVA of $1 and PVA of the table se MACR (Use appropriate factor(s) from the tables provided.) MACRS Straight-Line Depreciation Depreciation Year 1 9,000 18,000 Year 2 18,000 28,800 17280 Year 3 18,000 Year 4 18,000 10.368 Year 5 18,000 10.368 Year 6 9,000 5.184 Totals $90,000 $90,000