Question: QUESTION 10 XYZ is evaluating a project that would require the purchase of a piece of equipment for $420,000 today. During year 1, the

QUESTION 10 XYZ is evaluating a project that would require the purchase

QUESTION 10 XYZ is evaluating a project that would require the purchase of a piece of equipment for $420,000 today. During year 1, the project is expected to have relevant revenue of $760,000, relevant costs of $210,000, and relevant depreciation of $130,000. XYZ would need to borrow $420,000 today to pay for the equipment and would need to make an interest payment of $30,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $342,000. What is the tax rate expected to be in year 1? a. A rate less than 10.00 % or a rate equal to or greater than 30.00% b. A rate equal to or greater than 10.00 % but less than 15.00% c. A rate equal to or greater than 15.00 % but less than 20.00% d. A rate equal to or greater than 20.00% but less than 25.00% e. A rate equal to or greater than 25.00% but less than 30.00%

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