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3. Ben gets a raise in the current year of $10,000. His marginal tax rate is 31% (hypothetically). His after-tax cash flow wi
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Answer #1

Answer is a. $ 6900

Raise is $ 10,000

Amount of Tax = Amt * tax Rate

= 10,000* 31%

= 3100 $

After tax Cash Flow with regard to Raise

= $10,000-$3100

= $6900

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