Current year maintenance is $1200.$

Current $12$ x monthly payments $=24000,$ among which $4000$ is interest expense.

Property Tax and Interest Expenses both may provide tax saving $($also called tax shield$).$

Suppose the owner's marginal tax rate is $20\%$

Suppose the above four items are the only cash out$-$flows the owner will have. How much will the total Net cost of owning $?$

Hint: Net Cost of owning $=$ 'Before Taxes Cash Flow' $-$ Tax reduction from owning

Tax reduction from owning $=$ Marginal Tax Rate x $($Property Tax $+$ Interest Expenses$)$

A$\mathrm{.}31100$

B$\mathrm{.}29000$

C$\mathrm{.}29300$

D$.$none of the above