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Melinda has been offered two competing employment contracts for the next two years. Argus Corporation will pay her a $75,000 salary in both years 1 and 2. Dynamic Corporation will pay Melinda a $100,000 salary in year 1 and a $49,000 salary in year 2. Melinda expects to be in the 25 percent marginal tax bracket in year 1 and in the 33 percent marginal tax bracket in year 2 (due to a significant amount of income from new rental properties). She does not expect either offer to change her marginal tax bracket for either year. Both Argus Corporation and Dynamic Corporation expect their marginal tax brackets to remain at 34 percent over the two-year period and expect that employment tax rates will remain the same.
a. Compute the net present value of the after-tax cash flow for Melinda and after-tax cost for Argus and Dynamic for each of the proposed employment contracts using a 6 percent discount rate.
b. Which alternative is better for Melinda and which is better from the corporation's perspective?
Examine the concept of line versus staff authority and determine ways a manager may become an effective delegater of authority
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Susan has a part-time "cottage industry" producing seasonal plywood yard ornaments for resale at local craft fairs and bazaars. She thinks that by redesigning the ornaments and switching from use of a wood glue to a hot-glue gun she can increase he..
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A supermarket was interested in determining its image. It dropped a short questionnaire into the grocery bag of each customer before putting in the groceries - You have been charged with determining how to attract more business majors to your scho..
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Do you agree or disagree with the federal appeals decision? Why or why not? Why isclaiming a lack of copyright knowledge not a good defense against illegally sharing movies ormusic?
Why is it difficult to identify a single "best practice" IT governance configuration that works well for all hospitals? Describe the pros and cons of leasing models for health information technology.
Why must an employee buy in to a service management program? What can you do to ensure employee commitment? Share an experience when you either did or did not buy in to a service management program.
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