XYZ is evaluating the Reno project. The project would require an initial investment of $147,000 that would be depreciated to $15,400 over 6 years using straight-line depreciation. The project is expected to have operating cash flows of $46,100 per year forever. XYZ expects the project to have an after-tax terminal value of $331,000 in 3 years. The tax rate is 30%. What is (X+Y)/Z if X is the project's relevant expected cash flow in year 3, Y is the project's relevant expected cash flow in year 5, and Z is the project's relevant expected cash flow in year 2?

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A number equal to or greater than 11.96 but less than 13.08 A number less than 7.68 or a rate greater than 14.78 A number equal to or greater than 7.68 but less than 9.94 A number equal to or greater than 9.94 but less than 11.96 A number equal to or greater than 13.08 but less than 14.78