Question: XYZ is evaluating a project that would require a purchase of a piece of equipment for $100,000 today. During the year 1, the project is

 XYZ is evaluating a project that would require a purchase of

XYZ is evaluating a project that would require a purchase of a piece of equipment for $100,000 today. During the year 1, the project is expected to have a relevant revenue of 142,000, relevant costs of 93,000 and relevant depreciation of 23,000. XYZ would need to borrow $100,000 today to pay for the equipment and would need to make an interest payment of $2000 to the bank in 1 year. relevant net income for the project in year 1 is expected to be 15,000 what is the tax rate supposed to be in year 1? AA rate equal to or greater than 23% but less than 32%. B A rate equal to or greater than 32% but less than 41%. C A rate equal to or greater than 41% but less than 50%. D A rate equal to or greater than 50% but less than 50%. None of the above

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