XYZ is evaluating a project that would require the purchase of a piece of equipment for $560,000 today. During year 1, t

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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 expected to have relevant revenue of $765,000, relevant costs of
$192,000,
and relevant depreciation of $127,000. XYZ would need to borrow
$560,000 today to pay for the equipment and would need to make an
interest payment of $30,000 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 25.32% but less than
29.27%
O A rate equal to or greater than 21.08% but less than
25.32%
O A rate less than 21.08% or a rate greater than 46.38%
O A rate equal to or greater than 29.27% but less than
37.02%
O A rate equal to or greater than 37.02% but less than
46.38%