What initial salary would Ben need to receive to make him indifferent between attending Wilton

University and staying in his current position? Assume his tax rate after graduating from Wilton

University will be 31 percent regardless of his income level.

The initial salary Ben needs to receive in order to make him indifferent between attending Wilton University and staying in his current position.

C =?g = 3%r = 6.5%t = 38

MAB at Wilton = $1,271,843.94

Growing annuity present value C = C = $1,271,843.94

C = $61,902 after 26% tax rate

=

Salary = $83,651