Compare the cost of capital for the two following cases (.e. find the i that makes the NPV O for each case). Be sure to include the effect of taxes (which essentially reduce the cost to YOU of the payments that must be made to the bank in the first case) or to the bond holder (in the 2" case). a. An 8 year loan for $50,000 is taken from a bank at 8%. The loan is repaid in 8 equal yearly installments, starting at the end of year 1. The marginal tax rate is 52% 50 $1000 10 year bonds are sold (at face value, i.e. no discount) and pay a yearly 6% dividend. The marginal tax rate is 52%. Which is a better choice for financing a capital improvement and why? (20 Points)