Question: QUESTION 2 XYZ is evaluating the eco-can project, which would require the purchase of a piece of equipment for $600,000 today. During year 1, the

QUESTION 2 XYZ is evaluating the eco-can project, which would require

QUESTION 2 XYZ is evaluating the eco-can project, which would require the purchase of a piece of equipment for $600,000 today. During year 1, the eco-can project is expected to have relevant revenue of $880,000, relevant costs of $110,000, and relevant depreciation of $140,000. XYZ would need to borrow $600,000 today to pay for the equipment and would need to make an interest payment of $60,000 to the bank in 1 year. Relevant net income for the eco-can project in year 1 is expected to be $368,000. What is the tax rate expected to be in year 1? A rate equal to or greater than 35.00% but less than 40.00% A rate equal to or greater than 40.00% but less than 45.00% A rate equal to or greater than 45.00% but less than 50.00% A rate equal to or greater than 50.00% but less than 55.00% A rate less than 35.00% or a rate equal to or greater than 55.00%

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