If Thomas Has a 40% Tax Rate and a 6

Multiple Choice

If Thomas has a 40% tax rate and a 6% after-tax rate of return,$50,000 of income in five years will cost him how much tax in today's dollars? Use Exhibit 3.1 in the text.(Round present and future value amounts to 3 places)

A) $50,000.
B) $20,000.
C) $37,350.
D) $14,940.
E) None of the choices are correct.