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3. (: Incremental Cost) The opportunity cost is 9%. Loan Amount Points Terms of the loan Option 1 $120,000 1% 5%,30 Option 2 100.000 1%

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3. (: Incremental Cost) The opportunity cost is 9%. Loan Amount Points Terms of the loan Option 1 $120,000 1% 5%,30 Option 2 100.000 1% 4%,30 Assume a full-holding period. Which option (loan alternative) should be accepted? Prove your selection using PV analysis

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