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If Julius has a 28% tax rate and a 12% after-tax rate of return, $61,000 of income. In three years will cost him how much

If Julius has a 28% tax rate and a 12% after-tax rate of return, $61,000 of income. In three years will cost him how much tax in today's dollars? Use Exhibit 3.1.


 
 

EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return 8% Year 1 2 3 4 5 6 7 0 S 16 10 11 12 13 14 15 962 925 889 $55 $22 .790 760 731 .703 676 .650 .625 .601 577 555 5% 952 907 864 $23 784 746 711 677 645 614 585 557 530 505 481 943 $90 $40 792 747 .705 .665 627 592 558 527 497 469 442 417 7% 935 873 816 .763 713 .666 .623 582 544 508 475 444 415 388 .362 926 857 794 735 681 630 583 540 500 463 429 397 368 340 315 9% 917 842 772 .70S .650 596 547 502 460 422 388 356 .326 299 275 10% .909 $26 751 .683 621 564 513 467 424 .386 .350 319 290 263 239 11% 901 $12 731 659 593 535 482 434 391 352 317 236 258 232 209 12% 893 797 712 636 567 507 452 404 361 322 287 257 229 205 183

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