Problam 8.2: Decision Making ContinuedRefer to your answer in Q8.1. Assume all information in the options is thesame. What consideration could cause you to choose the option thatwould result in lower after-tax income? Problem 8.1: Decision MakingYou're presented with two job options:Option 1: Includes employer provided health insurance which would cost$9,000 for you to buy individually. In addition you will have access to thecompany gym (assume it meets the requirements of a qualified fringebenefit) which has a fair market value of $3,000.Option 2: Will pay an additional $14,000 but provides no health insuranceor gym membership.Assume you are in the 24% marginal tax bracket.Required: Indicate which option will provide you with the higher after-taxpayoff (1 or 2)

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Problam 8.2: Decision Making Continued Refer to your answer in Q8.1. Assume all information in the options is the same. What consideration could cause you to choose the option that would result in lower after-tax income?

Problam 8.2: Decision Making Continued Refer to your answer in Q8.1. Assume all information in the options is the same. What consideration could cause you to choose the option that would result in lower after-tax income?

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 1P

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Question

Problam 8.2: Decision Making Continued
Refer to your answer in Q8.1. Assume all information in the options is the
same. What consideration could cause you to choose the option that
would result in lower after-tax income?

Problem 8.1: Decision Making
You're presented with two job options:
Option 1: Includes employer provided health insurance which would cost
$9,000 for you to buy individually. In addition you will have access to the
company gym (assume it meets the requirements of a qualified fringe
benefit) which has a fair market value of $3,000.
Option 2: Will pay an additional $14,000 but provides no health insurance
or gym membership.
Assume you are in the 24% marginal tax bracket.
Required: Indicate which option will provide you with the higher after-tax
payoff (1 or 2)

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