Multiple Choice
If Julius has a 20% tax rate and a 10% after-tax rate of return,$25,000 of income in three 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) $3,755.
B) $18,775.
C) $5,000.
D) $25,000.
E) None of the choices are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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