Question
If Julius has a 25% tax rate and a 12% after-tax rate of return, $37,000 of income in three years will cost him how much
If Julius has a 25% tax rate and a 12% after-tax rate of return, $37,000 of income in three years will cost him how much tax in today's dollars? Use Exhibit 3.1. (Round present and future value factor(s) to 3 decimal places.)
Multiple Choice
$6,586.
$26,344.
$9,250.
$37,000.
None of the choices are correct.
EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return
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Auditing & Assurance Services
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
8th Edition
978-1260703733, 1260703738
