XYZ Corporation has a deferred compensation plan under which it allows certain employees to defer up to 40 percent of th

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XYZ Corporation has a deferred compensation plan under which it
allows certain employees to defer up to 40 percent of their salary
for five years. For purposes of this problem, ignore payroll taxes
in your computations. (Use Table 1.) (Round your intermediate
calculations and final answers to the nearest whole dollar amount.)
Problem 13-62 Part a (Static)
a. Assume XYZ has a marginal tax rate of 21 percent for the
foreseeable future and earns an after-tax rate of return of 8
percent on its assets. Joel Johnson, XYZ’s VP of finance, is
attempting to determine what amount of deferred compensation XYZ
should be willing to pay in five years that would make XYZ
indifferent between paying the current salary of $10,000 and paying
the deferred compensation. What amount of deferred compensation
would accomplish this objective?