Multiple Choice
If Rudy has a 25% tax rate and a 6% after-tax rate of return, a $30,000 tax deduction in four years will save how much tax in today's dollars? Use Exhibit 3.1. (Round present and future value amounts to 3 places)
A) $30,000.
B) $7,500.
C) $23,760.
D) $5,940.
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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