Required information [The following information applies to the questions displayed below.) Manning Corporation is considering a new project requiring a $80,000 investment in test equipment with no salvage value. The project would produce $69,000 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 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.) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Totale Straight-Line Depreciation $ 8,000 16,000 16,000 16,000 16,000 8,000 $80,000 MACRS Depreciation $16,000 25,600 15,360 9,216 9,216 4,608 $80,000 *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 8% as the discount rate. Chart Values are Based on: Year Net Cash Inflow X PV Factor Present Value 1 3. Compute the net present value of the investment if straight-line depreciation is used. Use 8% as the discount rate. Chart Values are Based on: PV Factor Present Value Year Net Cash Inflow X 1 2 3 4 5 6 Net present value