If Julius Has a 32 Percent Tax Rate and a 12

Multiple Choice

If Julius has a 32 percent tax rate and a 12 percent after-tax rate of return, a $58,000 tax deduction in two years will save how much tax in today's dollars? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.)

A) $58,000
B) $14,792
C) $46,226
D) $18,560
E) None of the choices are correct.