Question: XYZ is evaluating a project that would require the purchase of a piece of equipment for $ 590,000 today. During 1 year, the project is

XYZ is evaluating a project that would require the purchase of a piece of equipment for $ 590,000 today. During 1 year, the project is expected to have relevant revenue of $ 752,000, relevant cost of $ 207,000, and relevant depreciation of $124,000. XYZ would need to borrow $590,000 today to pay for the equipment and would need to make an interest payment of $26,000 to the bank in 1 year. relevant net income for the project in year 1 is expected to be $347,000. what is the tax rate expected to be in year 1?

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