Question: ABC Company needs one additional worker for two-year project. It could hire an employee for a $65,000 annual salary. Assume that ABC does not provide

ABC Company needs one additional worker for two-year project. It could hire an employee for a $65,000 annual salary. Assume that ABC does not provide health insurance to employees. Instead of hiring a new employee, ABC could engage an independent contractor for $78,000. If ABC's marginal tax rate is 35%, which option minimizes the after-tax cost of obtaining the worker?

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