DECISION MAKING 6-29 Opportunity Cost of Home Ownership Ernie McNaire has just made the nal payment on his mortgage. He could continue to live in the home; cash expenses for repairs and maintenance (after any tax. effects) would be $750 monthly. Alternatively, he could sell the home for $490,000 (net of taxes), invest the proceeds in 3% municipal tax-free bonds, and rent an apartment for $18,000 annually. The landlord would then pay for repairs and maintenance. - ' Prepare two analyses of McNaire's alternatives, one showing no explicit opportunity cost and the second showing the explicit opportunity cost of the decision to hold the present home