You work as a sales representative for a major pharmaceutical company. Most of your time is spent driving to hospitals and clinics in your sales territory to talk to doctors about your company's products. Your company provides you with a new company car every three years. This "fringe benefit" is not included as part of your taxable income, and were you lease an equivalent vehicle, you would pay $400. The company is currently changing its compensation packages and has proposed giving you an extra $400 in salary each month which you would use to lease a car. This payment of $400 would be taxable income. Assuming you are in the 25 percent tax bracket, shpuld you accept the company's proposal? Under what circumstance would you be no worse off if the company paid you cash instead of providing a car?