Multiple Choice
If Julius has a 30% tax rate and a 10% after-tax rate of return, a $40,000 tax deduction in two years will save how much tax in today's dollars? Use Exhibit 3.1. (Round present and future value amounts to 3 places)
A) $40,000.
B) $9,912.
C) $33,040.
D) $12,000.
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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