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