Required information [The following information applies to the questions displayed below.] Manning Corporation is considering a new project requiring a $120,000 investment in test equipment with no salvage value. The project would produce $67,000 of pretax income before depreciation at the end of each of the next six years. The company's income tax rate is 38%. 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 MACRS) (Use appropriate factor(s) from the tables provided.) Straight-Line MACRS Depreciation Depreciation* Year 1 $ 12, 000 $ 24, 000 Year 2 24, 000 38, 400 Year 3 24, 000 23, 040 Year 4 24, 000 13, 824 Year 5 24, 000 13, 824 Year 6 12, 000 6, 912 Totals $120, 000 $120, 000 * The modified accelerated cost recovery system (MACRS) for depreciation is discussed in Chapter 8. 3. Compute the net present value of the investment if straight-line depreciation is used. Use 10las the discount rate. Chart Values are Based on