Consider the following situation $($Assume Two Period Framework of EFB$210$ Weeks $1$ and $2)$:

Firm starts with an endowment of $$15$ million in cash. The interest rate is $10\%.$ The optimal policy for the firm is to invest $$7$ million in assets. The NPV of the investment is $$2$ million.

$($i$)$ What is the cash flow, X$2$ from the investment?

$($ii$)$ What is the IRR of the investment?

$($iii$)$ What is the total wealth, W$1$ of the firm once the investment is announced?

Group of answer choices

X$2=$ $$9\mathrm{.}2$m; IRR $=5\mathrm{.}33\%$; W$1=$ $$14$m

X$2=$ $$7\mathrm{.}7$m; IRR $=5\mathrm{.}33\%$; W$1=$ $$17$m

X$2=$ $$9\mathrm{.}9$m; IRR $=41\mathrm{.}43\%$; W$1=$ $$17$m

X$2=$ $$9\mathrm{.}9$m; IRR $=5\mathrm{.}33\%$; W$1=$ $$15\mathrm{.}2$m

X$2=$ $$9\mathrm{.}2$m; IRR $=53\mathrm{.}33\%$; W$1=$ $$15\mathrm{.}2$m