Question: QUESTION 4 2 points Save Answer XYZ is evaluating the Reno project. The project would require an initial investment of $130,000 that would be depreciated

 QUESTION 4 2 points Save Answer XYZ is evaluating the Reno

QUESTION 4 2 points Save Answer XYZ is evaluating the Reno project. The project would require an initial investment of $130,000 that would be depreciated to $17,000 over 6 years using straight-line depreciation. The project is expected to have operating cash flows of $47,900 per year forever. XYZ expects the project to have an after-tax terminal value of $387,000 in 3 years. The tax rate is 30%. What is (X+Y)/Z if X is the project's relevant expected cash flow in year 3, Y is the project's relevant expected cash flow in year 5, and Z is the project's relevant expected cash flow in year 2? A number equal to or greater than 8.58 but less than 10.05 A number equal to or greater than 11.58 but less than 12.26 A number equal to or greater than 10.05 but less than 11.58 A number less than 8.58 or a rate greater than 12.49 A number equal to or greater than 12.26 but less than 12.49 O O

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