TIS JUI e current year after considering the passive investment? -LO.3, 11 Emily has $100,000 that she wants to invest and is considering the follow. Decision Making ing two options: Option A: Investment in Redbird Mutual Fund, which is expected to produce Critical Thinking interest income of $8,000 per year. PART 3 Deductions Option B: Investment in Cardinal Limited Partnership (buys, sells, and operates wine vineyards). Emily's share of the partnership's ordinary income and loss over the next three years would be as follows: Year Income (Loss) WI vice (5 8.000) (2.000) 34,000 doc Emily is interested in the after-tax effects of these alternatives over a three-year horizon. Assume that Emily's investment portfolio produces ample passive activity income to offset any passive activity losses that may be generated. Her cost of capital is 8%, and she is in the 32% tax bracket. The two investment alternatives possess equal growth potential and comparable financial risk. a. Based on these facts, compute the present value of these two investment alter- natives and determine which option Emily should choose. Refer to Appendix H for the present value factors 1 Prepare your solution using spreadsheet software such as Microsoft Excel Docx