The Certainty Company (CC) operates in a world of certainty. It has just hired Mr. Jones, age 27, who will retire at age 65, draw retirement benefits for 5 years, and die at age 70. Mr. Jones' salary is $16,000 per year, but wages are expected to increase at the 4% annual rate of inflation. CC has a defined benefit plan in which workers receive 1% of the final year's wage for each year employed. The retirement benefit, once started, does not have a cost-of-living adjustment. CC earns 10% annually on its pension fund assets and uses a 9% rate to discount its expected future benefit payments. Assume that pension contribution and benefit cash flows occur at year-end. Do not round intermediate calculations. Round your answers to the nearest dollar. a. How much will Mr. Jones receive in annual retirement benefits? $ b. What is CC's required annual contribution to fully fund Mr. Jones' retirement benefits? C. Assume now that CC hires Mr. Smith at the same $16,000 salary as Mr. Jones. However, Mr. Smith is 54 years old. Repeat the analysis in parts a and b under the same assumptions used for Mr. Jones. What is CC's required annual contribution to fully fund Mr. Smith's retirement benefits? $ What do the results imply about the costs of hiring older versus younger workers? From a pension funding standpoint alone, CC would favor a(an) older worker as the -Select- worker requires higher annual pension fund contributions. d. Now assume that CC hires Ms. Brown, age 27, at the same time that it hires Mr. Smith. Ms. Brown is expected to retire at age 65 and to live to age 75. What is CC's annual pension cost for Ms. Brown? $ If Mr. Jones and Ms. Brown are doing the same work, are they truly doing it for the same pay? The company is actually "paying" Ms. Brown -Select-than they are paying Mr. Jones. The Certainty Company (CC) operates in a world of certainty. It has just hired Mr. Jones, age 27, who will retire at age 65, draw retirement benefits for 5 years, and die at age 70. Mr. Jones' salary is $16,000 per year, but wages are expected to increase at the 4% annual rate of inflation. CC has a defined benefit plan in which workers receive 1% of the final year's wage for each year employed. The retirement benefit, once started, does not have a cost-of-living adjustment. CC earns 10% annually on its pension fund assets and uses a 9% rate to discount its expected future benefit payments. Assume that pension contribution and benefit cash flows occur at year-end. Do not round intermediate calculations. Round your answers to the nearest dollar. a. How much will Mr. Jones receive in annual retirement benefits? $ b. What is CC's required annual contribution to fully fund Mr. Jones' retirement benefits? C. Assume now that CC hires Mr. Smith at the same $16,000 salary as Mr. Jones. However, Mr. Smith is 54 years old. Repeat the analysis in parts a and b under the same assumptions used for Mr. Jones. What is CC's required annual contribution to fully fund Mr. Smith's retirement benefits? $ What do the results imply about the costs of hiring older versus younger workers? From a pension funding standpoint alone, CC would favor a(an) older worker as the -Select- worker requires higher annual pension fund contributions. d. Now assume that CC hires Ms. Brown, age 27, at the same time that it hires Mr. Smith. Ms. Brown is expected to retire at age 65 and to live to age 75. What is CC's annual pension cost for Ms. Brown? $ If Mr. Jones and Ms. Brown are doing the same work, are they truly doing it for the same pay? The company is actually "paying" Ms. Brown -Select-than they are paying Mr. Jones