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19. Assume that an investment has the following cash. flows: Period 0 $10,000 Period 1 -$21,600 Period 2 $11,600 The investment has IRRs of 0
19. Assume that an investment has the following cash. flows: Period 0 $10,000 Period 1 -$21,600 Period 2 $11,600 The investment has IRRs of 0 and 0.16. Assume the firm has a time value of 0.10 (it can borrow at 0.10). Divide the investment into two components, a fictitious borrowing of $10,000 at time 0, paying $11,000 at time 1, and an investment of $10,600 at time 1, earning $11,600 at time 2. Determine whether the basic investment is desirable
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