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A treasury manager is examining two possible investment alternatives for the firm's excess cash holdings. Investment A is a taxable money market security with a

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A treasury manager is examining two possible investment alternatives for the firm's excess cash holdings. Investment A is a taxable money market security with a yield of 4.75%. Investment B is a muni with a yield of 2.5%. The firm's marginal tax rate is 40%. With these base assumptions, which security should the treasury manager choose? Provide quantitative support for your answer. (5 points)

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