Sal, a calendar-year taxpayer, uses the cash-basis method of accounting for his sole proprietorship. In late December he performed $58,000 of consulting services for a client. Sal typically requires his clients to pay his bills immediately upon receipt. Assume that Sal's marginal tax rate is 32 percent this year and 37 percent next year and that he can earn an after-tax rate of return of 11 percent on his investmess. Should Sal send his client the bill in December or January? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.) Albir a .792 EXHIBIT 3-1 Present Value of a Single Payment at Various Annual Rates of Return 4% 5% 6% 7% 8% 9% 10% 11% 12% Year 1 962 952 943 935 926 917 909 901 .893 Year 2 925 1907 .890 .873 .857 .842 .826 .812 .797 Year 3 .889 .864 .840 .816 .794 .772 .751 .731 .712 Year 4 .855 .823 .763 .735 .708 .683 .659 .636 Year 5 .822 .784 .747 .713 .681 .650 .621 .593 567 Year 6 .790 .746 .705 .666 630 596 564 535 .507 Year 7 -760 .665 .623 583 547 .513 482 452 Year 8 .731 .677 .627 .582 .540 .502 467 .434 404 Year 9 .703 .645 .592 .544 .500 460 .424 391 361 Year 10 .676 .614 .558 508 .463 .422 386 .352 .322 Year 11 .650 585 .527 475 429 .388 350 .317 .287 Year 12 .625 .557 .497 444 .397 .356 319 .286 .257 Year 13 .601 530 469 415 .368 .326 .290 .258 .229 Year 14 | .577 .505 442 .388 .340 .299 .263 .232 .205 Year 15 .555 481 .417 .362 .315 .275 .239 .209 .183 .711