3. Violet Sky Aviation is evaluating the laser tag center project. During year 1, the laser tag center project is expected to have relevant revenue of 715,500 dollars, relevant variable costs of 294,500 dollars, and relevant depreciation of 61,800 dollars. In addition, Violet Sky Aviation would have one source of fixed costs associated with the laser tag center project. Violet Sky Aviation just signed a deal with Blue Eagle Consulting to develop an advertising campaign for use in the project. The terms of the deal require Violet Sky Aviation to pay Blue Eagle Consulting either 106,700 dollars in 1 year if the project is pursued or 130,000 dollars in 1 year if the project is not pursued. Relevant net income for the laser tag center project in year 1 is expected to be 219,134 dollars. What is the tax rate expected to be in year 1? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

4. Fairfax Pizza is evaluating a project that would require an initial investment in equipment of 200,000 dollars and that is expected to last for 6 years. MACRS depreciation would be used where the depreciation rates in years 1, 2, 3, and 4 are 38 percent, 35 percent, 19 percent, and 8 percent, respectively. For each year of the project, Fairfax Pizza expects relevant, incremental annual revenue associated with the project to be 324,000 dollars and relevant, incremental annual costs associated with the project to be 274,000 dollars. The tax rate is 50 percent. What is (X plus Y) if X is the relevant operating cash flow (OCF) associated with the project expected in year 1 of the project and Y is the relevant OCF associated with the project expected in year 4 of the project?