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If Thomas has a 20% tax rate and a 11% after-tax rate of return, $72,500 of income in five years will cost him how much

If Thomas has a 20% tax rate and a 11% after-tax rate of return, $72,500 of income in five 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

$72,500.

$14,500.

$45,528.

$8,599.

None of the choices are correct.

image text in transcribed EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return

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