please with question 19 thanks.

4,000 A B 22 The cont Currently shut don An alt cause th continue with doi What rate its 23 Cornell 21,000 18 Assume that an investment has the following cash flows Period o $10,000 Period 1 $21,600 Period 2 - $11,600 the inve lockers howeve wherea Assu This investment has IRRs of 0 and 0.16. Assume ent has IRRs of O and 0.16. Assume that the firm has a time value of money of 0.10 (it can borrow at 0.10 ey of 0.10 (it can borrow at 0.10). Divide the investment into components, a fictitious investment of $10,000 at time o, returning $11,000 at time 1,000 at time 1, and the borrowing of $10.600 at time 1, requiring an outlay of $11,600 at time 2. Determine whether the basic investment is desirable. 19 Assume that an investment has the following cash flows: the sys equal t The waiting 24 A firm at the the bu Period o $10,000 Period 1 -$21,600 Period 2 $11,600 will ha The soldf The The investment has IRRs of O 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 o, 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. 20 Assume that an investment has the following cash flows: (exclu a Period o $10,000 Period 1 $10,000 Period 2 $10,000 Period 3 $29,000 SOLUTI By inspe The firm uses the internal rate of return method of evaluating investments and has a hurdle rate of 0.10. Is the investment desirable? 21 The ABC Company can save $200,000 immediately by reducing its finished goods inventory. Lost sales due to stockouts will be $30,000 per year as a result of the reduction, however. This decision offers a 15 percent internal rate of retur Should the change be accepted if the cost of money of the firm is 10 percent? The fund 110