IN THE TEXT
-Rodney,a cash basis taxpayer,owes $40,000 in tax deductible consulting fees for his business.Assume that it is December 28ᵗʰ and that Rodney can avoid any finance charges if he pays the accounting fees by January 10ᵗʰ.Rodney's tax rate this year is 30% and his after-tax rate of return is 10%.At what tax rate next year,will Rodney be indifferent between paying the $40,000 this year and next year? Use Exhibit 3.1.(Round discount factor(s)to 3 decimal places.)

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The Answer of IN THE TEXT
-Rodney,a cash basis taxpayer,owes $40,000 in tax deductible consulting fees for his business.Assume that it is December 28ᵗʰ and that Rodney can avoid any finance charges if he pays the accounting fees by January 10ᵗʰ.Rodney's tax rate this year is 30% and his after-tax rate of return is 10%.At what tax rate next year,will Rodney be indifferent between paying the $40,000 this year and next year? Use Exhibit 3.1.(Round discount factor(s)to 3 decimal places.)

IN THE TEXT -Rodney,a Cash Basis Taxpayer,owes $40,000 in Tax Deductible Consulting Fees