Question: XYZ is evaluating the Reno project , the project would require an initial investment of 129000 that would be depreciated to 15100 over 6 years

XYZ is evaluating the Reno project , the project would require an initial investment of 129000 that would be depreciated to 15100 over 6 years using straight -line depreciation. The project is expected to have operating cash flows of 49200 per year forever. XYZ expects the project to have an after- tax terminal value of 374000 in 3 years . The tax rate is 30%. What is (x + Y)/ z if x the projects relevant expected cash flow in year 3, y is the projects relevant expected cash flow in year 4, and z is the projects relevant expected cash flow in year 2

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