QUESTION 1 XYZ is evaluating the Reno project. The project would require an initial investment of $141.000 that would be depreciated to $15,700 over 6 years using straight-line depreciation. The project is expected to have operating cash flows of $50,500 per year forever. XYZ expects the project to have an after-tax terminal value of $377,000 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 7.97 but less than 10.02 O A number less than 7.97 or a rate greater than 14.19 O A number equal to or greater than 12.60 but less than 14.19 O A number equal to or greater than 10.02 but less than 11.69 O A number equal to or greater than 11.69 but less than 12.60 QUESTION 2 What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $86,600.00, the tax rate is 30.00%6, the equipment is sold in 2 years for $18,700.00, and MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 40.00%, 35.0096, 20.00%, and 5.00%, respectively? $19,585 (plus or minus $10) O $13,090 (plus or minus $10) $15,155 (plus or minus $10) O $22,535 (plus or minus $10) O None of the above is within $10 of the correct