Stuck on this question, last time I asked they got the answer wrong thus the red marks. Thank you
[The following information applies to the questions displayed below.) Manning Corporation is considering a new project requiring a $90,000 investment in test equipment with no salvage value. The project would produce $68,500 of pretax income before depreciation at the end of each of the next six years. The company's income tax rate is 36%. 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.) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Totals Straight-Line Depreciation $ 9,000 18,000 18,000 18,000 18,000 9,000 $90,000 MACRS Depreciation* $18,000 28,800 17,280 10,368 10,368 5,184 $90,000 S. Compute delle present Value ultiemeslientil Sliaiyile uepellaLUIT is useu. USE Answer is not complete. Chart Values are Based on: Net Cash PV Year Inflow Factor 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 $ 38,080 X X 2 3 2,320X x 3 32,320xx 32,320XX 32,320XX 38,080 x Present value of cash inflows Present value of cash outflows Net present value = = = = Present Value $ 35,259X 27,709x 25,656 23,755 21,997 23,998 $ 158,374 (90,000) $ 68,375 5 = S. Compute delle present Value ultiemeslientil Sliaiyile uepellaLUIT is useu. USE Answer is not complete. Chart Values are Based on: Net Cash PV Year Inflow Factor 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 $ 38,080 X X 2 3 2,320X x 3 32,320xx 32,320XX 32,320XX 38,080 x Present value of cash inflows Present value of cash outflows Net present value = = = = Present Value $ 35,259X 27,709x 25,656 23,755 21,997 23,998 $ 158,374 (90,000) $ 68,375 5 = X Answer is complete but not entirely correct. x $ x PV Factor 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 Present Value 29,926 X 22,222 26,022 Chart Values are Based on: 8% Net Cash Year Inflow 32,320 25,920 X 32,781 X 37,204 X 37,204 x 40,522 Present value of cash inflows Present value of cash outflows Net present value = = = = x 27,345 25,321 x * 25,537 156,373 (90,000) 66,374 X
