In the current year, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her a $90,800 annual salary with no qualifled fringe benefits and, requires her to pay $3,900 a year for parking and to purchase life insurance at a cost of $1,400. The second package offers an $80,400 annual salary, employer-provided health insurance, annual free parking (worth $370 per month), $200.000 of life insurance (purchasing on her own would have been $1,400 annually), and free flight benefits (she estimates that it will save her $5,400 per year). If Jill chooses the first package, she will purchase the health and life insurance benefits herself at a cost of $1,400 annually after taxes and spend another $5.400 in flights while traveling. Assume her marginal tax rate is 32 percent. (Use Exhibit 12.8.) Required: a1. Which compensation package should she choose? a2. How much would she benefit in after-tax dollars by choosing this compensation package instead of the alternative package? b1. Assume the first package offers a $105,000 salary instead of a $90,800 salary, and the other benefits and costs are the same. Which compensation package should she choose? b2. How much would she benefit in after-tax dollars by choosing this package? EXHIBIT 12-8 Uniform Premiums for $1,000 of Group-Term Life Insurance Protection