6. XYZ is evaluating the Reno project. The project would require an initial investment of $129,000 that would be depreciated to $15,100 over 6 years using straight-line depreciation. The project is expected to have operating

cash flows of $49,200 per year forever. XYZ expects the project to have an after-tax terminal value of $374,000 in 3 years. The tax rate is 30%. What is (X+Y)/Z if X is the project's relevant expected cash flow in year 3, Y is

the project's relevant expected cash flow in year 4, and Z is the project's relevant expected cash flow in year 2?

O A number equal to or greater than 11.58 but less than 12.39

O A number equal to or greater than 10.07 but less than 11.58

O

A number equal to or greater than 12.39 but less than 13.92

O A number equal to or greater than 8.10 but less than 10.07

O

A number less than 8.10 or a rate greater than 13.92