If Thomas has a 40% tax rate and a 6% after-tax rate of return, $50,000 of income in five years will cost him how much tax in today's dollars? Use Exhibit 3.1. (Round present and future value amounts to 3 places)
A) $50,000.
B) $20,000.
C) $37,350.
D) $14,940.
E) None of the choices are correct.
Correct Answer:
Verified
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