Mrs. Jax plans to pay $100,000 for one of three investment alternatives that have the same risk. The income from investment 1 would be taxed at Mrs. Jax's 37% regular tax rate, the income from investment 2 would be taxed at a 20% preferential rate, and the income from investment 3 is tax-exempt. The investments offer the following before-tax yields.Investment 1: 8.25%Investment 2: 7.5%Investment 3: 6.0%Which investment should Mrs. Jax select?

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The Answer of Mrs. Jax plans to pay $100,000 for one of three investment alternatives that have the same risk. The income from investment 1 would be taxed at Mrs. Jax's 37% regular tax rate, the income from investment 2 would be taxed at a 20% preferential rate, and the income from investment 3 is tax-exempt. The investments offer the following before-tax yields.Investment 1: 8.25%Investment 2: 7.5%Investment 3: 6.0%Which investment should Mrs. Jax select?

Mrs Jax Plans to Pay $100,000 for One of Three