Marla recently inherited $$50,000$ and is considering two alternatives for investing these funds. Investment A is stoc of a C corporation, expected to pay annual dividends of $8$ percent. Investment B is stock of an S corporation. Based on income projections, Marla's share of the S corporation's ordinary income would be approximately $$10,000$ per year. However, the S corporation does not expect to make cash distributions for the foreseeable future. Marla would hold either investment for three years, at which time she believes the C corporation stock could be sold for $$60,000,$ and the S corporation stock could be sold for $$90,000.$

Assume that the initial investment would be made in year $0,$ dividends on the C corporations stock would be received in years $1,2,$ and $3$: and either investment would be sold in year $3.$