An all-equity firm is deciding how much cash to invest in business and how much to return to shareholders (through dividends or share repurchase). The following table shows how different investment levels will perform. The first column shows possible investment levels and the second column shows the cash flow generated from each investment level after one year (M stands for $millions). All the cash generated from investments will be returned to shareholders. Assume investment can only be made in multiples of millions. Shareholders will earn a return of 12% over nexyt year on cash that they get today from dividends. There are no taxes. The firm has cash of $10 million. How much of this cash should be invested in the firm and how much should be returned to the shareholders? Investment 1M 2M 3M 4M 5M 6M 7M 8M 9M 10M Cash Flow 2.137M 3.618M 4.973M 6.154M 7.305M 8.429M 9.513M 10.577M 11.581M 12.565M