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Question Completion Status: QUESTION 3 2 points Save Answer XYZ is evaluating the Reno project. The project would require an inital investment of $129.000 that

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Question Completion Status: QUESTION 3 2 points Save Answer XYZ is evaluating the Reno project. The project would require an inital investment of $129.000 that would be depreciated to $15.700 over 6 years using straight line depreciation. The project is expected to have operating cash flows of 549,200 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+YyZX is the project's relevant expected cash flow in year 3, Y is the project's relevant expected cash flow in year 4, and 2 is the projects relevant expected cash flow in year 22 A number equal to or greater than 11 58 but less than 1239 A number equal to or greater than 10.07 but less than 15 58 A number equal to or greater than 12 39 but less than 1392 A number equal to or greater than 8.10 but less than 10.07 A number loss than 8,10 or a rate greater than 13.92 2 points QUESTION 4 XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening a new indoor track in Santa Fe. During year 1, XYZ would have total revenue of $169,000 and total costs of 379,000 if it pursues the Santa Fe project, and the firm would have total revenue of $156,000 and total costs of $70,000 if it does not pursue the Santa Fe project. Depreciation taken by the firm would be $75,000 if the firm pursues the project and $39,000 if the firm does not pursue the project. The tax rate is 48.90%. What is the relevant operating cash flow (OCF) for year 1 of the Santa Fe project that XYZ should use in its NPV analysis of the Santa Fe project? $25,352.00 (plus or minus $1) $19,648.00 (plus or minus $1) $45,000.00 (plus or minus $1) $29,352 00 (nlus or minus 51) None of the above is within 51 of the correct

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