If Julius Has a 22 Percent Tax Rate and a 10

Multiple Choice

If Julius has a 22 percent tax rate and a 10 percent after-tax rate of return, $25,000 of income in three years will cost him how much tax in today's dollars? Use Exhibit 3.1. (Rounddiscount factor(s) to three decimal places.)

A) $4,131
B) $18,775
C) $5,500
D) $25,000
E) None of the choices are correct.