Question: Emely is a master tax planner. She sets up a transaction so that she receives $10,000 in cash on December 2023, but that the taxes
Emely is a master tax planner. She sets up a transaction so that she receives $10,000 in cash on December 2023, but that the taxes paid on that cash are deferred until December 2025. What is the after-tax cash flow for this entire transaction? Assume a tax rate of 30% for the transaction and a discount rate of 8.
A. 7k
B. 7,429
C. 7,701
D. 12,592
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