# Im completely lost with this

Anonymous

### Question Description

 Manning Corporation is considering a new project requiring a \$94,000 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 company’s income tax rate is 40%. 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.)

 Straight-LineDepreciation MACRSDepreciation Year 1 \$ 9,400 \$ 18,800 Year 2 18,800 30,080 Year 3 18,800 18,048 Year 4 18,800 10,829 Year 5 18,800 10,829 Year 6 9,400 5,414 Totals \$ 94,000 \$ 94,000
 Complete the following table assuming use of straight-line depreciation. Net cash flow equals the amount of income before depreciation minus the income taxes.

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