The manager at Striker Corporation can hire only one student for the summer.

She can hire Ken, a marketing student, who will do research on a marketing plan, or Lisa, a tax student, who will research tax strategies to reduce corporation taxes. If she hires Ken, his wages and benefits will total $5,600 (all tax-deductible expenses). Ken’s marketing plan is expected to generate $6,000 in new revenues with a probability of success estimated at 80 percent. If she hires Lisa, her wages and benefits will be $6,000 (also fully tax deductible). Lisa’s tax plan is expected to save Striker $5,600 in federal income taxes.The probability of success for this plan is estimated to be 75 percent. Striker’s marginal tax rate is 39 percent.Who should the manager hire?

AppendixLO1