Red Circle Construction is evaluating Project B. In year 3, Project B is expected to have relevant revenue of $585,000, relevant variable costs of $432,000, and relevant depreciation of $108,000. In addition, Red Circle Construction would have one source of fixed costs associated with Project B. Red Circle Construction just signed a deal with Frontier Design to develop an advertising campaign for the project. The terms of the deal require Red Circle Construction to pay Frontier Design either $77,000 in 3 years if the project is pursued or $108,000 in 3 years if the project is not pursued. Relevant net income in year 3 for Project B is expected to be $57,000. What is the tax rate expected to be in year 3? Input instructions: Input your answer as the number that appears before the percentage sign. For example, enter 9.86 for 9.86% (do not enter .0986 or 9.86%). Round your answer to at least 2 decimal places.
percent