question archive Silver Sun Food is evaluating the laser tag center project
Silver Sun Food is evaluating the laser tag center project
Subject:FinancePrice: Bought3
Silver Sun Food is evaluating the laser tag center project. During year 1, the laser tag center project is expected to have relevant revenue of 631,700 dollars, relevant variable costs of 299,300 dollars, and relevant depreciation of 95,300 dollars. In addition, Silver Sun Food would have one source of fixed costs associated with the laser tag center project. Silver Sun Food just signed a deal with Green Forest Media to develop an advertising campaign for use in the project. The terms of the deal require Silver Sun Food to pay Green Forest Media either 104,200 dollars in 1 year if the project is pursued or 132,300 dollars in 1 year if the project is not pursued. Relevant net income for the laser tag center project in year 1 is expected to be 109,846 dollars. What is the tax rate expected to be in year 1? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
