If Julius Has a 30% Tax Rate and a 10

question 61

Multiple Choice

If Julius has a 30% tax rate and a 10% after-tax rate of return, a $40,000 tax deduction in two years will save how much tax in today's dollars (rounded) ?

• A) $40,000
• B) $9,912
• C) $33,040
• D) $12,000
• E) None of these