After-tax rate of return, Jonah has the choice of paying

After-tax rate of return

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Reference no: EM131319754

A. Jonah has the choice of paying Rita $24,000 today or $96,000 in 10 years. Assume Jonah can earn a 12 percent after-tax rate of return. Which should he choose?

B. Assume Rafael can earn an 8 percent after-tax rate of return.

Would he prefer $2,700 today or $4,050 in five years?

Reference no: EM131319754

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