$89,000 to permit sales of the additional output. The firm has tax loss carryforwards that render its tax rate zero, its cost of equity is 14%, and it uses no debt. a. What is the incremental profit? Round your answer to the nearest dollar. \% Should the firm make the investment? b. Would the firm's break-even boint increase or decrease if it made the change? c. Would the new situation expose the firm to more or less business risk than the old one? I. The new situation would obviously have more business risk than the old one. II. The new situation would obviously have less business risk than the old one. III. It is impossible to state unequivocally whether the new situation would have more or less business risk than the old one. -Select-V