Problem 24-3A Computation of cash flows and net present values with alternative depreciation methods LO P3 (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 $72,000 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. FV of $1, PV of $1, FVA of $1 and PVA of $1 Ise MACRS (Use appropriate factors) from the tables provided.) Straight-line Depreciation Year 1 $ 9,000 Year 2 18,000 Year 3 18,000 Year 4 18,000 Year 5 18,000 Year 6 9,000 MACRS Depreciation $ 18,000 28,800 17,280 10,368 10,368 5,184 Totals $90000 $90,000