Should Ferris Corporation elect to forgo the carryback of its $ 60,000 year 2014 net operating loss? Ferris is subject to a 16 percent cost of capital. Corporate tax rates are as in I. R. C. § 11.

a.

Tax Year Actual or Projected Taxable Income

2013 ………………………………$ 700,000

2015 ……………………………… $ 700,000

b.

Tax Year Actual or Projected Taxable Income

2013 …………………………………..$ 70,000

2015 ………………………………….. $ 700,000

c.

Tax Year Actual or Projected Taxable Income

2013 ………………………………….$ 70,000

2014 …………………………………. ($ 0)

2015 …………………………………. ($ 0)

2016 …………………………………. ($ 0)

2017 …………………………………. $ 700,000