Question: QUESTION 3 XYZ is evaluating the Reno project. The project would require an initial investment of $128.000 that would be depreciated to $15,200 over 6
QUESTION 3 XYZ is evaluating the Reno project. The project would require an initial investment of $128.000 that would be depreciated to $15,200 over 6 years using straight line depreciation. The project is expected to have operating cash flows of $49,800 per year forever. XYZ expects the project to have an after tax terminal value of $343,000 in 3 years. The tax rate is 30% What is (X+Yyz 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 is the project's relevant expected cash flow in year 27 A number equal to or greater than 11 72 but less than 1360 A number equal to or greater than 9 33 but loss than 1172 O A number loss than 739 or a rate greater than 1544 A number oqual to or greater than 13.60 but less than 1544 A number equal to or greater than 739 but less than 9 33
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