• What is the relevant net income for year 1 of project A that Middlefield Motors should use in its NPV analysis of the project? The tax rate is 35 percent. During year 1, the project A is expected to have relevant revenue of 73,000 dollars, relevant variable costs of 15,000 dollars, and relevant depreciation of 16,000 dollars. In addition, Middlefield Motors would have one source of fixed costs associated with the project A. Yesterday, Middlefield Motors signed a deal with Creative Advertising to develop a marketing campaign. The terms of the deal require Middlefield Motors to pay Creative Advertising either 28,000 dollars in 1 year if project A is pursued or 11,000 dollars in 1 year if project A is not pursued.