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If Julius has a 22 percent tax rate and a 10 percent after-tax rate of return, $25,000 of income in three years will cost him
If Julius has a 22 percent tax rate and a 10 percent 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. (Round discount foc to three decir places.) Type here to search E .952 EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return 4% 5% 696 796 896 99% 10% 11% 12% Year 1 .962 943 935 1926 .917 .909 .901 .893 Year 2 .925 .907 .890 .873 .857 .842 .826 812 .797 Year 3 .889 .864 840 .816 .794 .772 .751 .731 1712 Year 4 .855 .823 .792 .763 .735 .708 .683 .659 .636 Year 5 .822 .784 .747 .713 .681 .650 .621 .593 .567 Year 6 .790 .746 .705 .666 .630 596 .564 .535 .507 Year 7 .760 .711 .665 .623 .583 .547 .513 .482 .452 Year 8 .731 .677 .627 .582 .540 .502 .467 .434 .404 Year 9 .703 .645 .592 544 .500 460 .424 .391 .361 Year 10 .676 .614 .558 .508 .463 .422 -386 .352 .322 Year 11 .650 .585 .527 .475 .429 .388 -350 .317 287 Year 12 .625 .557 497 .444 397 356 319 286 .257 Year 13 .601 .530 .469 .415 .368 326 .290 .229 Year 14 .577 .505 442 388 340 .299 .263 .232 .205 Year 15 .555 481 .417 .362 .315 275 239 209 258 .183 ED
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