Mr. Hayes plans to pay $100,000 for one of three investment alternatives that have the same risk. The income from investment 1 would be taxed at Mr. Hayes's 25% regular tax rate, the income from investment 2 would be taxed at a 15% preferential rate, and the income from investment 3 is tax- exempt. The investments offer the following before-tax yields. Investment 1 9.0% Investment 2 7.5% Investment 3 6.0% Which investment should Mr. Hayes select?