If Julius Has a 32 Percent Tax Rate and a 9

Multiple Choice

If Julius has a 32 percent tax rate and a 9 percent after-tax rate of return, a $34,000 tax deduction in two years will save how much tax in today's dollars? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.)

A) $34,000
B) $9,161
C) $28,628
D) $10,880
E) None of the choices are correct.