Consider a firm that uses capital and labor as inputs and sells 5,000 units of output per year at the going market price of $10. Also assume that total labor costs to the firm are $45,500 annually. Assume further that the total capital stock of the firm is currently worth $100,000, that the return to investors with comparable risk is 11 percent annually, and that there was no depreciation. Is this firm profitable? Explain your answer.