Multiple Choice
If Thomas has a 37 percent tax rate and a 7 percent after-tax rate of return, $66,500 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) $66,500
B) $24,605
C) $48,490
D) $17,543
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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