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XYZ is evaluating the Reno project. The project would require an initial investment of $132,000 that would be depreciated to $15,900 over 6 years using straight-line depreciation. The project is expected to have operating cash flows of $49,600 per year forever. XYZ expects the project to have an after-tax terminal value of $341,000 in 3 years. The tax rate is 30%. What is (X+Y)/Z if X is the project's relevant expected cash flow in year 3,Y is the project's relevant expected cash flow in year 4 , and Z is the project's relevant expected cash flow in year 2 ? A number equal to or greater than 13.62 but less than 15.47 A number equal to or greater than 11.78 but less than 13.62 A number equal to or greater than 9.37 but less than 11.78 A number less than 7.38 or a rate greater than 15.47 A number equal to or greater than 7.38 but less than 9.37 XYZ is considering buying a new, high efficiency interception system. The new system would be purchased today for $48,300.00. It would be depreciated straight-line to $0 over 2 years. In 2 years, the system would be sold for an after-tax cash flow of $15,000.00. Without the system, costs are expected to be $100,000.00 in 1 year and $100,000.00 in 2 years. With the system, costs are expected to be $79,200.00 in 1 year and $69,700.00 in 2 years. If the tax rate is 46.00% and the cost of capital is 8.00%, what is the net present value of the new interception system project? $12722.47 (plus or minus $50 ) $8798.15 (plus or minus $50 ) $10178.81 (plus or minus $50 ) $11876.15 (plus or minus $50 ) None of the above is within $50 of the correct