1.A firm has 3 possible investments available.The firm can borrow from the bank with an 8% interest rate and save with the bank at a 5% interest rate

Project 1:Paying $10,000 today for employee training that will increase profit $9000 next year and $2000 the year after.

Project 2:Paying $50,000 for a new truck that will increase profit starting next year $18000 a year for the next 3 years, then disintegrate.

Project 3:Paying $20,000 for new computers that decrease profit next year by $1000 but increase profit the next year by $22,400

Explain whether each of the following statements is true or false.Be sure to use specific numbers in your explanations

a) If the firm has $100,000 on hand, it should do the most expensive project first. (3 points)

b) The firm will never borrow money to make any of these iwnvestments. (3 points)