2. You plan to retire 30 years from now. In the current year, you face a 30% tax rate on ordinary income. But, in 30 years from now at retirement, you expect to face a 15% rate because you wont have any wage income to put you in a higher tax bracket. Assume that for the entire period that any dividends and long-term capital gains you have are taxed at a 15% rate. You expect that you can earn an after-tax rate of return of 7% on any investments you make yourself. Your companys pension plan earns a 11% pre-tax rate of return, and the company itself earns a 9% after-tax return on its own projects. The company currently faces a 21% tax rate but expects it will face a 35% rate in 30 years.
   1. How much of a contribution to your pension plan (P₀) would the company have to make to make you indifferent between pension benefits in 30 years and the pre-tax bonus you calculated in part a. (B₀)?