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A borrower finds that the incremental cost of borrowing an extra $ 1 0 , 0 0 0 is 1 4 percent. The borrower can

A borrower finds that the incremental cost of borrowing an extra $10,000 is 14 percent. The borrower can earn 12 percent on alternative investments of comparable risk, so he would be better off by not borrowing the extra 14 percent.?

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