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42. Ms. Kent has $200,000 in an investment paying 8% annual interest. Her marginal tax rate is 40%. Which of the following statements is false?

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42. Ms. Kent has $200,000 in an investment paying 8% annual interest. Her marginal tax rate is 40%. Which of the following statements is false? A. Ms. Kent's annual before-tax cash flow from this investment is $16,000. B. If the interest is tax-exempt, Ms. Kent's annual after-tax cash flow is $16,000. C. If the interest is taxable, Ms. Kent's annual after-tax cash flow is $6,400. D. None of the above is false

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