Safari File Edit View History Bookmarks Window Help ezto.mheducati al Asset Management Internships Fall 2016 l Internships. video production Internships near michigan Page 21 intern. Manning Corporation is considering a new project requiring a 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 income tax 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. EV of S1, PV of $1. EVA of S1 and evA of $1 (use MACRS Use appropriate factor(s) from the tables provided.) Straight Line Depreciation Depreciation Year 1 10,000 20,000 Year 2 20,000 32.000 Year 3 19,200 Year 4 20,000 Year 5 20.000 11,520 11,520 Year 6 10,000 5,760 Totals $100,000 $100,000 2.50 points Required 1. Complete the following table assuming use of straight-line depreciation. Net cash flow equals the amount of income before depreciation minus the income taxes. Year 1 74,000 10,000 64.000 21,760 S 52,240 20,000 54,000 18,360 55,640 20,000 54,000 18,360 55,640 7d,000 Year 4 20,000 54,000 18,360 55,640 Year 5 7.000 20,000 54,000 18,360 55,640 74,000 10,000 21,760