George inherited $100,000 with the stipulation that he invest it to financially benefit his family. George and Alice decided they would in invest the inheritance to help them accomplish two financial goals: purchasing a Park City Vacation home and saving for their son, Cooper’s education. Vacation Home Cooper’s Education Initial Investment $50,000 $50,000 Investment horizon 5 years 18 years Alan and Alice have a marginal income tax rate of 30 percent (capital gains of 15 percent) and have decided to investigate the following investment opportunities. 5 Years Annual After-Tax Rate of Return 18 Years Annual After-Tax Rate of Return Corporate bonds (ordinary interest taxed annually) 5.75% 4.75% Dividend-paying stock (no appreciation and dividends are taxed a t 15%) 3.50% 3.50% Municipal bond (tax exempt) Future value is $65,000 Future value is $140,000 3.10% Complete the two annual after-tax rates of return columns for each investment and provide investment recommendations for George and Alice.