Your boss has just congratulated you
on the wonderful job you did this year. In order to formally
recognize your achievements, he would like to either give you a
bonus, or increase your salary. If you take the bonus, you will
receive $5,000 immediately. The salary increase would be a 1.5%
addition to the 40,000 per annum you currently receive, payable at
each year-end. In either event, you must pay taxes at a rate of 44%
and plan to work...