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B is a building contractor. H&R LLC is a real estate developer. H&R has offered to either pay him for construction services on an office

B is a building contractor. H&R LLC is a real estate developer. H&R has offered to either pay him for construction services on an office building, (1) $250,000 cash, or (2) a 5% share of the LLC profits for the next 10 years. B estimates the value of the 5% interest is $250,000. Why might B and the LLC owners benefit in terms of after-tax present values if B accepts the 5% interest in profits?

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