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1. Given the information below, is this a feasible investment project? Briefly explain. ENR 4,000 6,000 3,000 4,000 2,000 time - 2 3 4 5

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1. Given the information below, is this a feasible investment project? Briefly explain. ENR 4,000 6,000 3,000 4,000 2,000 time - 2 3 4 5 Price of Machine = 20,000 r= 0 ITC = 0 2. Suppose the ENR in year 5 increases to 4,000, ceteris paribus, is the project feasible now? Briefly explain. 3. (Back to the original situation)Suppose the government establishes a 10% tax credit, is the investment feasible now? Briefly explain

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