Determine whether the basic investment is desirable. 19 Assume that an investment has the following cash flows: Period 0 $10,000 Period 1 -$21,600 Period 2 $11,600 The investment has IRRS of 0 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 0, 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: Period 0 $10,000 Period 1 Period 2 Period 3 $10,000 $10,000 -$29,000 The firm uses the internal rate of return method of evaluating investments and has a hurdle rate of 0.10. Is the investment desirable? ARC C canave $300.000 immediately by reducing its finished-