Question 1 (1 point) Suppose a homeowner has an existing mortgage loan with these terms: Remaining balance of $220,000, interest rate of 6%, and remaining term of 8 years (monthly payments). This loan can be replaced by a loan at an interest rate of 5% , at a cost of 4% of the outstanding loan amount. You feel the appropriate opportunity cost to apply to this refinancing decision is 6%. What is the net present value (NPV) of refinancing, assuming the loan will be held to maturity? a) -$739.06 b) $1,018.88 c) $2,681.64 d) $7,984.17 e) $8,060.94 Question 2 (1 point) Assume an elderlv.counle owns a $370 000 home that