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XYZ is evaluating the Reno project. The project would require an initial investment of $ 1 3 1 , 0 0 0 that would be

XYZ is evaluating the Reno project. The project would require an initial investment of $131,000 that would be depreciated to $16,900 over 6 years using straight-line depreciation. The project is expected to have operating cash flows of $48,300 per year forever. XYZ expects the project to have an after-tax terminal value of $390,000 in 3 years. The tax rate is 30%. What is (X+Y)/Z if X is the project's relevant expected cash flaw in year 3, Y is the project's relevant expected cash flow in year 4, and Z is : the project's relevant expected cash flow in year 2? A number less than 8.57 or a rate greater than 12.51 A number equal to or greater than 12.26 but less than 12.51 A number equal to or greater than 11.58 but less than 12.26 A number equal to or greater than 8.57 but less than 10.05 A number equal to or greater than 10.05 but less than 11.58

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