Question: Indigo River Shipping is evaluating a project that would require the purchase of a piece of equipment for 910,000 dollars today. During year 1, the

Indigo River Shipping is evaluating a project that would require the purchase of a piece of equipment for 910,000 dollars today. During year 1, the project is expected to have relevant revenue of 833,700 dollars, relevant costs of 255,000 dollars, and relevant depreciation of 72,900 dollars. Indigo River Shipping would need to borrow 910,000 today for the equipment and would need to make an interest payment of 40,300 dollars to the bank in 1 year. Relevant operating cash flow for the project in year 1 is expected to be 278,407 dollars. What is the tax rate expected to be in year 1? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

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