Respuesta :
It is $19,070.91 in today's dollars.
Tax value = $83,000 * 37/100 * 0.621 (10% after-tax rate of return for 5 yrs of income)
What is the difference between the Tax rate and After Tax Rate?
An investor must compare the figures on a common platform when comparing taxable returns and tax-free returns. An investor can determine whether a tax-free investment will provide him with a higher return than a taxable investment using the Tax-Equivalent Return calculation.
The return an investor would have received on a tax-free return after including the tax benefit is known as the tax equivalent return.
This tax benefit would be subject to the investor's tax slab. As a result, if two investors are in different tax brackets, they may see the same tax-free investment but receive different tax-equivalent returns.
The tax equivalent return would increase in proportion to the investor's tax bracket.
The real return an investor receives following the deduction of tax on a taxable investment is known as the "after-tax return." Or it might be the refund after taxes.
Therefore, the Tax value in today's dollar is $19,07.91.
For more information on the Tax rate of return, refer the given link:
https://brainly.com/question/24107106
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