Question: XyZ is evaluating a project that would require the purchase of a piece of equipment for $480,000 today. During year 1, the project is expected

XyZ is evaluating a project that would require the purchase of a piece of equipment for $480,000 today. During year 1, the project is expected to have relevant revenue of 3722. 000, relevant costs of $210,000, arus relevant depreciation of $126,000. XYZ would need to borrow $480,000 today to pay for the equipment and would need to make an interest payment of $28,000 to the bank in 1 year. Relevant net incorre for the project in year 1 is expected to be $320,000. What is the lax rate expected to be in year 1?

O A rate equal to or greater than 25.11% but less than 29.20%

A rate equal to or greater than 29.20% but less than 34.76%

O A rate equal to or greater than 34.76% but less than 41.17%

O A rate less than 25.11% or a rate greater than 44.76%

O A rate equal to or greater than 41.17% but less than 44.76%

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