If Julius has a 32 percent tax rate and a 10 percent after-tax rate of return, a
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Question:
If Julius has a 32 percent tax rate and a 10 percent after-tax rate of return, a $36,000 tax deduction in two years will save how much tax in today's dollars? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.)
| $11,520. | ||
| $29,736. | ||
| None of the choices are correct. | ||
| $36,000. | ||
| $9,516. |
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