Spotted Potato is evaluating project A , which would require the purchase of a piece of equipment
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Question:
Spotted Potato is evaluating project A which would require the purchase of a piece of equipment for $ During year project A is expected to have relevant revenue of $ relevant costs of $ and some depreciation. Spotted Potato would need to borrow $ for the equipment and would need to make an interest payment of $ to the bank in year Relevant net income for project A in year is expected to be $ and operating cash flows for project A in year are expected to be $ Straightline depreciation would be used. What is the tax rate expected to be in year
plus or minus bps
plus or minus bps
plus or minus bps
plus or minus bps
none of the answers are within bps of the correct answer
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