XYZ is evaluating a project that would require the purchase of a piece of equipment for. $410,000 today. During year 1, the project is expected to have relevant revenue of $755,000, relevant costs of $199,000, and

relevant depreciation of $139,000. XYZ would need to borrow $410,000 today to pay for the equipment and would need to make an interest payment of $23,000 to the bank in 1 year. Relevant net income for the project

in year 1 is expected to be $337,000. What is the tax rate expected to be in year 1?

O A rate less than 16.43% or a rate greater than 55.28%

- O A rate equal to or greater than 16.43% but less than 19.74%

O A rate equal to or greater than 34.25% but less than 55.28%

O A rate equal to or greater than 22.02% but less than 34.25%

O A rate equal to or greater than 19.74% but less than 22.02%