[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 $73,500 of pretax income before depreciation at the end of each of the next six years. The company's income tax rate is 32%. 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.) Straight-Line MACRS epreciation Depreciation Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $ 9,000 18,000 18,000 18,000 18,000 9,000 $ 18,000 28,800 17,280 10,368 10,368 5,184 Totals $90,000 $90,000 Complete the following table assuming use of straight-line depreciation. Net cash flow equals the amount of income before depreciation minus the income taxes. Income Before Straight-Line Taxable Income Net Cash Depreciation Depreciation Income Taxes Flows Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Complete the following table assuming use of MACRS depreciation. Net cash flow equals the amount of income before depreciation minus the income taxes. Income Before MACRS TaxableIncome Net Cash Taxes Depreciation Deprciation Income Flows Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Compute the net present value of the investment if straight-line depreciation is used. Use 10% as the discount rate Chart Values are Based on: Year Net Cash Inflowx PV FactorPresent Value 4 Net present value Compute the net present value of the investment if MACRS depreciation is used. Use 10% as the discount rate. Chart Values are Based on: | Year Net Cash Inflow x PV Factor Present Value 4 Net present value