Teresa ask employer for a 300000 interest free loan for a cottage. she acquire regular mortgage at a rate 4. assume that the relevant prescribed rate...

Teresa ask employer for a 300000 interest free loan for a cottage. she acquire regular mortgage at a rate 4.5% . assume that the relevant prescribed rate 2% tax rate on any addition income 46% . the company has alternative investment opportunities that earn a before tax  rate of 7%. the company is subject to a tax rate of 36% on addition income. evaluate Teresa suggestion of providing her with an interest free loan in lieu of salary from the point of view of the cost to Elmwood inc