XYZ is evaluating a project that would require the purchase of a piece of equipment for $440,000 today. During year 1, the project is expected to have relevant revenue of $786,000, relevant costs of $201,000, and relevant depreciation of $132,000. XYZ would need to borrow $440,000 today to pay for the equipment and would need to make an interest payment of $33,000 to the bank in 1 year. Relevant net income for the project in year 1 is expected to be $337,000. What is the tax rate expected to be in year 1?

		A rate equal to or greater than 21.96% but less than 26.61%
		A rate less than 21.96% or a rate greater than 46.34%
		A rate equal to or greater than 31.02% but less than 38.39%
		A rate equal to or greater than 38.39% but less than 46.34%
		A rate equal to or greater than 26.61% but less than 31.02%