Question: Orange Circle Sugar is evaluating Project X . In year 4 , Project X is expected to have relevant revenue of$ 6 6 1 ,

Orange Circle Sugar is evaluating Project X. In year 4, Project X is expected to have relevant revenue of$661,000, relevant variable costs of $473,000, and relevant depreciation of $71,000. In addition, Orange Circle Sugar would have one source of fixed costs associated with Project X. Orange Circle Sugar just signed a deal with Maple Marketing to develop an advertising campaign for the project. The terms of the deal require Orange Circle Sugar to pay Maple Marketing $98,000 in 4 years. Relevant net income in year 4 for Project X is expected to be $94,500. What is the tax rate expected to be in year 4? Input instructions: Input your answer as the number that appears before the percentage sign. For example, enter 9.86 for 9.86%(do not enter .0986 or 9.86%). Round your answer to at least 2 decimal places. percent

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!