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ENR 4,000 5,000 3,000 4,000 3,000 time 0 1 2 3 4 5 Price of Machine = 20,000 r=0 ITC=0 1. Given the above information,
ENR 4,000 5,000 3,000 4,000 3,000 time 0 1 2 3 4 5 Price of Machine = 20,000 r=0 ITC=0 1. Given the above information, is this a feasible investment project? a. Yes, 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 AC of the machine. c. No, because the AC of the machine exceeds the present value of the net revenue stream. d. No, because the present value of the net revenue stream exceeds the AC of the machine. 2. Given the information in the table above. If the ENR in year 5 increases to $5,000, then the expected rate of profit on this project is equal to 3. Given the information in the table above. If the ITC increases to 10%, then the expected rate of profit on this project is equal to 4. Given the information in the table above. If the ENR in year 3 increases to $5,000 and the ITC = 10% , then the expected rate of profit on this project is equal to
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