XYZ is evaluating a project that would require the purchase of a piece of equipment for $510,000 today. During year 1, the project is expected to have relevant revenue of $763,000, relevant costs of $197,000, and relevant depreciation of $140,000. XYZ would need to borrow $510,000 today to pay for the equipment and would need to make an interest payment of $25,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $340,000. What is the tax rate expected to be in year 1?

		A rate equal to or greater than 17.25% but less than 20.82%
		A rate equal to or greater than 20.82% but less than 23.37%
		A rate equal to or greater than 23.37% but less than 34.73%
		A rate less than 17.25% or a rate greater than 53.60%
		A rate equal to or greater than 34.73% but less than 53.60%