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XYZ Corporation has a Deferred Compensation Plan under which it allows certain employees to defer up to 25% of their salary for 5 years. For

XYZ Corporation has a Deferred Compensation Plan under which it allows certain employees to defer up to 25% of their salary for 5 years. For purposes of this problem, ignore payroll taxes in your computations. Use table 1. Round your intermediate calculations and final answers to the nearest whole dollar amount. Okay assume Julian XYZ employee has the option of participating in XYZ is Deferred Compensation Plan. Julie's marginal tax rate is 37% and she expects the right to remain constant over the next five years. Julie is trying to decide how much different compensation she will need to receive from XYZ in five years to make her indifferent between receiving the current salary of 13800 and receiving the Deferred Compensation payment. If Julie takes a salary, she will invest in a taxable corporate bond paying interest at 12% annually after taxes. What amount of deferred compensation would accomplish this objective?

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