2. Jamie Thompson is thinking about investing in some residential income-producing property that sh


2. Jamie Thompson is thinking about investing in some residential allowance-producing possessions that she can dissipation for $200,000. Jamie can either pay specie for the unmeasured equality of the possessions or put up $50,000 of her own capital and hypothecate the fostering $150,000 at 8% attention. The possessions is expected to engender $30,000 per year following all expenses but precedently attention and allowance taxes. Assume that Jamie is in the 28% tax bracket. Calculate her annual emolument and retaliate on cannonade pretentious that she (a) pays the unmeasured $200,000 from her own funds, or (b) hypothecates $150,000 at 8%. Then argue the movables, if any, of leverage on her reprimand of retaliate. (Hint: Rights precedently attention and taxes minus attention expenses (if any) equals rights precedently taxes minus allowance taxes (at 28%) equals emolument following taxes.)