Comprehensive Problem $12-50($LO $12-1,$ LO $12-2,$ LO $12-3)($Algo$)$ Skip to question $[$The following information applies to the questions displayed below.$]$ Pratt is ready to graduate and leave College Park. His future employer $($Ferndale Corporation$)$ offers the following four compensation packages from which Pratt may choose. Pratt will start working for Ferndale on January $1,$ year $1.$ Benefit DescriptionOption $1$Option $2$Option $3$Option $4$Salary$ $67,800$$ $56,500$$ $51,500$$ $51,500$Health insuranceNo coverage$ $5,260$$ $5,260$$ $5,260$Restricted stock$001,000$ shares$0$NQOs$000100$ options Assume that the restricted stock is $1,000$ shares that trade at $$5$ per share on the grant date $($January $1,$ year $1)$; shares are expected to be worth $$10$ per share on the vesting date at the end of year $1$; and no $83($b$)$ election is made. Assume that the NQOs $(100$ options$)$ each allow the employee to purchase $10$ shares at $$5$ exercise price. The stock trades at $$5$ per share on the grant date $($January $1,$ year $1)$ and is expected to be worth $$10$ per share on the vesting date at the end of year $1,$ and the options are exercised and sold at the end of the year. Also assume that Pratt spends on average $$3,390$ on health$-$related costs that will be covered by insurance if he had coverage or is an after$-$tax expense if he isn't covered by insurance $($treat this as a cash outflow$).$ Assume that Pratt's marginal tax rate is $35$ percent. $($Ignore FICA taxes and time value of money considerations$).$ Comprehensive Problem $12-50$ Parts a and b $($Algo$)$ Required: What is the after$-$tax value of each compensation package for year $1?$ If Pratt's sole consideration is maximizing after$-$tax value for year $1,$ which scheme should he select?