If Julius Has a 30% Tax Rate and a 10

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 in the text.(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.