Question: XYZ is evaluating a project that would require the purchase of a piece of equipment for 540000 today. During year 1, the project is expected
XYZ is evaluating a project that would require the purchase of a piece of equipment for 540000 today. During year 1, the project is expected to have relevant revenue of 784000, relevant costs of 208000, and relevant depreciation of 130000. XYZ would need to borrow 540000 today to pay for the equipment and would need to make an interest payment of 21000 mto the bank in year . Relevant net income for the project in year 1 is expected to be 345000. What is the taX rests expected to be in year 1 ?
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