K.C. is an executive at WanCentral, Inc. negotiating his pay…
K.C. is an executive at WanCentral, Inc. negotiating his pay package. He’s trying to decide whether to push for a $100,000 bonus paid this year or a $110,000 bonus paid two years from now. Assume K.C.’s current MTR is 25% percent, but he expects his MTR in two years to be 23% percent. K.C faces a 6% discount rate. Round your final answer to the nearest whole number. Omit $. What is the after-tax PV of the current bonus offer? $ What is the after-tax PV of the deferred bonus offer? $