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Problem 8.1 - Decision making You've received two job offers from the same employer that only vary on the following dimensions. Assume you have a
Problem 8.1 - Decision making You've received two job offers from the same employer that only vary on the following dimensions. Assume you have a 25% marginal tax rate for both options. Option 1: Work at the corporate office, which provides you with access to the company meditation center (assume it qualifies as a non-taxable fringe benefit). Equivalent outside meditation center access would cost $15,000. Option 2: Work at a remote site would involve a reduction to your daily commute of 1 hour. Required: How much more pre-tax income would Option 2 have to pay in order for it to deliver an equivalent payoff to option 1 ? Problam 8.2: Decision Making Continued Assume that the dollar amount of the after-tax benefit from option 2 is less than the aftertax benefit from option 1. Name one consideration that could cause you to choose option 2. No calculations are required
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