In each of the following scenarios should Ferris Corporation elect to forgo the carryback of its $60,000 year 2017 NOL? Ferris is subject to a 16 percent cost of capital. Corporate tax rates are as in IRC § 11.

a. Tax Year Actual or Projected Taxable Income

2016.............................$700,000

2018.............................$700,000

b. Tax Year Actual or Projected Taxable Income

2016.............................$70,000

2018...........................$700,000

c. Tax Year Actual or Projected Taxable Income

2016.............................$70,000

2018..................................($0)

2019..................................($0)

2020...........................$700,000