Business, 30.03.2021 16:20 shyshy1791

A borrower has an opportunity to reduce the amount cash needed to purchase a house by borrowing an extra $10,000. The borrower finds that the incremental cost of borrowing the extra $10,000 is 14%. The borrower can earn 12% on alternative investments of comparable risk so he would be better off by not borrowing the extra $10,000. Which of the below choices is most correct? (A) The above conclusion is true
(B) Not enough information is provided to determine if the above conclusion is true
(C) The above conclusion is NOT true
(D) Depends on the length of the loan

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A borrower has an opportunity to reduce the amount cash needed to purchase a house by borrowing an e...

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