Question: XVz is evaluating a project that would require the purchase of a piece of equipment for $430,000 today, During year 1 , the project is
XVz is evaluating a project that would require the purchase of a piece of equipment for $430,000 today, During year 1 , the project is expected to have relevant revenue of 5772,000 , relevant costs of $198,000, and relevant depreciation of $127,000.12 would need to borrow $430,000 today to pay for the equipment and would need to make an interest payment of $27,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $335,000. What is the fax rate expected to be in year 1? A rate equal to or greater than 25.86% but less than 30.05% A rate equal to or greater than 37.77% but less than 46.43% A rate egual to or greater than 22.04% but less than 25.66% Arate less than 22.04% or a rale greater than 46.43% A rate equal to or greater than 30.05\% but lets than 37,77%
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