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

XYZ is evaluating a project that would require the purchase of

XYZ is evaluating a project that would require the purchase of a piece of equipment for $100,000 today. During year 1, the project is expected to have 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 $2,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $22,000. What is the tax rate expected to be in year 1? A rate equal to or greater than 5.00% but less than 14.00% O A rate equal to or greater than 14.00% but less than 23.00% A rate equal to or greater than 23.00% but less than 32.00% A rate equal to or greater than 32.00% but less than 41.00% O A rate less than 5.00% or a rate equal to or greater than 41.00%

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