13.A risky 40,000 investment is expected to generate the following cash flows: Yr. 1 3 3 $145,300 $175,455 $156.788 $145,000 If the firm's cost of capital is 10 percent should the investment be made? 14. Apple has $10,000 in assets entirely financed with equity, Google has $10,000 in assets, but these assets are financed $5,000 in debt (with a 10% rate of interest) and $5,000 in equity, Both firms sall $10,000 units of output at $2.50 per unit. The variable costs of production are 51 and fixed production costs are $12,000. a.what is the operating income for both companies? b.what are the earnings after interest? calf sales increase by 10 percent to 11.000 units, by what percentage will each firm's earnings after interest increase? d.why are the percentage changes different? 15. Bosco has 5,000,000 shares of common stock outstanding with a market value of $60 per share. Net Income for the coming year is expected to be $6.900.000. What impact willa three-for-one-stock solit have on the camines per share and on the price of the stock