The following information is available about a project by Finoloop Limited for the months of April and May. Answer the following questions to calculate the free cash flow from the project for the month of May.

Income statement of the firm for the month of May:

Particulars

Amount

EBITDA

$ $76,000$

Depreciation

$ $2,000$

EBIT

$ $74,000$

Interest expense

$ $4,000$

Earnings before tax

$ $70,000$

Tax

$ $7,000$

Earnings after tax

$ $63,000$

What is the tax rate to be applied to the EBIT? Choose from the following options.

$30\%$

$20\%$

$10\%$