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XYZ is evaluating a project that would require the purchase of a piece of equipment for $560,000 today. During year 1 , the project is
XYZ is evaluating a project that would require the purchase of a piece of equipment for $560,000 today. During year 1 , the project is expected to have reieva depreciation of $130,000. XYZ would need to borrow $550,000 today to pay for the equipment and would need to make an interest payment of $34.000 int is expected to be $348,000. What is the tax rate expected to be in year 1 ? A rate equal to or greater than 32.84% but less than 55.41% A rate equal to or greater than 18.51% but less than 20.42% A rate equal to or greater than 13.71% but less than 18.51% A rate equal to or greater than 20.42% but loss than 32.84% A rate less than 13.71% or a rate greater than 55.41%
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