Scenario 13-5 Suppose That Emily Opens a Restaurant. She Receives a Loan

Multiple Choice

Scenario 13-5
Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000. She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%.
-Refer to Scenario 13-5. Emily's implicit cost of capital is

A) $2,000.
B) $4,000.
C) $12,000.
D) $14,000.