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QUESTION 1 XYZ is evaluating a project that would require the purchase of a piece of equipment for $590,000 today. During year 1, the project
QUESTION 1 XYZ is evaluating a project that would require the purchase of a piece of equipment for $590,000 today. During year 1, the project is expected to have relevant revenue of $771,000, relevant costs of $197,000, and relevant depreciation of $136,000.XYZ would need to borrow $590,000 today to pay for the equipment and would need to make an interest payment of $38,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $347,000. What is the tax rate expected to be in year 1? O A rate equal to or greater than 24.49% but less than 34.71% O A rate equal to or greater than 16.44% but less than 21.76% O A rate equal to or greater than 34.71% but less than 51.67% O A rate equal to or greater than 21.76% but less than 24.49% O A rate less than 16.44% or a rate greater than 51.67%
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