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Compute the annual after-tax cost of each option

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Reference no: EM132100402

Question - Trent Inc. needs an additional worker on a multiyear project. It could hire an employee for a $72,750 annual salary. Alternatively, it could engage an independent contractor for a $79,900 annual fee. Trent's marginal income tax rate is 34%. Compute the annual after-tax cost of each option and indicate which minimizes the after-tax cost of obtaining the worker.

Reference no: EM132100402

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