If Thomas has a 28% tax rate and a 8% after-tax rate of return, $56,000 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

a) $56,000.

b) $15,680.

c) $38,910.

d) $10,678.

e) None of the choices are correct.

EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return