Ms.Lenz has $100,000 in an investment paying 9% annual interest.Her marginal tax rate is 25%.Which of the following statements is false?
A) Ms.Lenz's annual before-tax cash flow from this investment is $9,000.
B) If the interest is tax-exempt,Ms.Lenz's annual after-tax cash flow is $9,000.
C) If the interest is taxable,Ms.Lenz's annual after-tax cash flow is $6,750.
D) None of the above is false.
Correct Answer:
Verified
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