There is a $1-$year project that starts in a years time. Your analysis shows that at

the end of the $1$ year investment, this project generates an $10\%$ return on investment. You need to fund this project, you need to borrow from the debt market where the $1-$year is $5\%$ and $2-$year rate is $8\%.$ How would use this info to decide whether to invest in this project or not.