Multiple Choice
If Thomas has a 37 percent tax rate and a 6 percent after-tax rate of return, $50,000 of income in five years will cost him how much tax in today's dollars? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.)
A) $50,000
B) $18,500
C) $37,350
D) $13,820
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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