If Joel Earns a 6 Percent After-Tax Rate of Return

question 93

Multiple Choice

If Joel earns a 6 percent after-tax rate of return, $26,000 received in two years is worth how much today? Use Exhibit 3.1. (Round discount factor(s) to three decimal places.)

• A)$26,000
• B)$24,530
• C)$23,140
• D)$27,560
• E)None of the choices are correct.

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