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Your neighbour is considering changing jobs and has asked you to assess the cash flow advantage or disadvantage of going to the new job. The
Your neighbour is considering changing jobs and has asked you to assess the cash flow advantage or disadvantage of going to the new job. The current job pays $53,000 per year and the new job would pay $57,000 per year. The current job covers the cost of a private health care plan ($300/year) and provides a company car (total standby charge and operating benefit of $12,000). If your neighbour goes to the new job, the only benefit provided will be private health care, and your neighbour will need to lease a car for $200/ month. Your neighbour is in a 35% marginal tax bracket. REQUIRED: Calculate the cash flow increase or decrease of moving to the new job. Write your answer (without $ sign and rounded to zero decimal places) in the space provided below. If a decrease, place a minus sign in front of your
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