Intel is considering making a new investment of $ 1000 in a new chip producing facility and has come with the following estimated revenues are 1250 , operating expenses 500, depreciation $250 per year. The project will end after four years, the marginal tax rate is 40% and the cost of capital for Intel is 0.08.

Intelisconsideringmakinganewinvestmentof 1000 in a new chip pro- ducing facility and has come with the following estimated revenues are 1250 , operating expenses 500, depreciation 250peryear.Theprojectwillendafter four years, themarginaltarrateis40