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

XYZ is valuating a project that would require the purchase of a piece of equipment for $100,000 today. During year 1. the prct is expected to we 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 $5,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $11,000. What is the tax rate expected to be in year 1? Arate less than 23.00% or a rate equal to or greater than 59.00% 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% A rate equal to or greater than 41.00% but less than 50.00% A rate equal to or greater than 50.00% but less than 59.00%

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