In 2016, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $91,500 annual salary with no qualified fringe benefits, requires her to pay $3,000 a year for parking, and pay her life insurance premiums at a cost of $1,050. The second package offers $81,500 annual salary, employer-provided health insurance, annual free parking (worth $280 per month), $212,000 of life insurance (purchasing on her own would have been $1,050 annually), and free flight benefits (she figures that it will save her $5,500 per year). If Jill chooses the first package, she would purchase the health and life insurance benefits herself at a cost of $5,650 annually after taxes and spend another $5,500 in flights while traveling. Assume her marginal tax rate is 28 percent. (Round your intermediate computations to the nearest whole dollar amount.)

EXHIBIT 12-10 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection Cost per $1,000 of Protection for One Month 5-year Age Bracket $0.05 06 08 09 Under 25 25 to 29 30 to 34 35 to 39 40 to 44 45 to 49 50 to 54 55 to 59 60 to 64 65 to 69 70 and above .15 23 43 1.27 2.06