Question: spotted potato is evaluating a project that would require the purchase of a piece of equipment for $496,000 today. During year 1, the project is

spotted potato is evaluating a project that would require the purchase of a piece of equipment for $496,000 today. During year 1, the project is expected to have relevant revenue of $404,000, relevant costs of $158,000, and relevant depreciation of $110000. spotted potato would need to borrow $496,000 today for the equipment and would need to make an interest payment of $28,000 to the bank in 1 year. relevant operating cash flow for the project in year 1 is expected $193,000. What is the tax rate expected to be in year 1?

A) 15.21% (plus or minus 3bps)

B) 19.12% (plus or minus 3bps)

C) 38.97% (plus or minus 3bps)

D) 56.04 % (plus or minus 3bps)

Need help fast please!!! Double check your answers please also!!!

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