Question: Use the table for the question below Cash flow Cash flow in one 10 10 15 10 15 15 7) If the risk-free interest rate

Use the table for the question below Cash flow Cash flow

Use the table for the question below Cash flow Cash flow in one 10 10 15 10 15 15 7) If the risk-free interest rate is 10%, then of the four projects listed, which project would you never want to invest in? A) Eenie B) Meenie C) Mighty D) Moe 8) Assume that you presently have a monthly home mortgage with a stated interest rate of 7% APR. If your income tax rate is 20% and interest expenses on home mortgage are tax deductible, then the after tax EAR for your home mortgage is closest to: A) 56% B) 7.2% C) 7.0% D) 5.8%

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