QUESTION $7$

XYZ is evaluating the Reno project. The project would require an initial investment of $$150,000$ that would be depreciated to $$17,000$ over $6$ years using straight$-$line depreciation. The project is expected to have operating cash flows of $$50,700$ per year forever. XYZ expects the project to have an after$-$tax terminal value of $$329,000$ in $3$ years. The tax rate is $30\%.$ What is $\frac{x+Y}{Z}$ if $x$ is the project's relevant expected cash flow in year $3,Y$ is the project's relevant expected cash flow in year $6,$ and $Z$ is the project's relevant expected cash flow in year $2?$

A number equal to or greater than $14\mathrm{.}38$ but less than $16\mathrm{.}44$ A number equal to or greater than $9\mathrm{.}14$ but less than $12\mathrm{.}07$

A number equal to or greater than $12\mathrm{.}07$ but less than $14\mathrm{.}38$

A number less than $6\mathrm{.}99$ or a rate greater than $16\mathrm{.}44$

A number equal to or greater than $6\mathrm{.}99$ but less than $9\mathrm{.}14$