QUESTION $4$

$xYZ$ is evaluating a project that would require the purchase of a piece of equipment for $$440,000$ today. During year $1,$ the project is expected to have relevant revenue of $$787,000,$ relevant costs of $$194,000,$ and relevant depreciation of $$126,000.$ XYZ would need to borrow $$440,000$ today to pay for the equipment and would need to make an interest payment of $$34,000$ to the bank in $1$ year. Relevant net income for the project in year $1$ is expected to be $$345,000.$ What is the tax rate expected to be in year $1?$

A rate equal to or greater than $22\mathrm{.}48\%$ but less than $27\mathrm{.}15\%$

A rate less than $22\mathrm{.}48\%$ or a rate greater than $43\mathrm{.}31\%$

A rate equal to or greater than $38\mathrm{.}01\%$ but less than $43\mathrm{.}31\%$

A rate equal to or greater than $27\mathrm{.}15\%$ but less than $31\mathrm{.}77\%$

A rate equal to or greater than $31\mathrm{.}77\%$ but less than $38\mathrm{.}01\%$