Investment alternatives for the firm excess cash holdings

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Reference no: EM131930207

A treasury manager is examining two possible investment alternatives for the firm's excess cash holdings. Investment X is a taxable money market security with a yield of 4.2%. Investment Y is a muni with a yield of 1.5%. The firm s marginal tax rate is 35%. With these assumptions, which security should the treasury manager choose?

Reference no: EM131930207

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