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If Julius Has a 30% Tax Rate and a 10

Question 61

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 (rounded) ?


A) $40,000
B) $9,912
C) $33,040
D) $12,000
E) None of these

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