ENR 4,000 3,000 3,000 4,000 3,000

______________________________________________

time 0 1 2 3 4 5

Price of Machine = 20,000 r = 0 ITC = 10%

. Given the info above and assuming this company has a total corporate income tax obligation of $1,000 is this investment project feasible?

a. No, because the present value of the net revenue stream exceeds the price of the machine.

b. Yes, because the present value of the net revenue stream exceeds the price of the machine.

c. No, because the AC of the machine exceeds the present value of the net revenue stream.

d. Yes, because the present value of the net revenue stream exceeds the AC of the machine.

e. none of the above