This is based on the fisher separation theorem. Please help me understanding this question.

7. Redraw Figure 2.5 to scale to represent the following situation: I A firm starts out with $10 million in cash. IThe rate of interest r is 10 per cent. I To maximise NPV the firm invests today $6 million in real assets (Co 6 million). This leaves $4 million that can be paid out to the shareholders. I The NPV of the investment is $2 million. When you have finished, answer the following questions: a. How much cash is the firm going to receive in year 1 from its investment? b. What is the marginal return from the firm's investment? What is the present value of the shareholders' investment after the firm has announced its investment plan? d. Suppose shareholders want to spend $6 million today. How can they do this? e. How much will they then have to spend next year? Show this on your drawing. Dollars, period 1 FIGURE 2-5 Both the prodigal and the miser have initial wealth of D. They are better off if they invest JD in real assets and then borrow or lend in the capital market. If they could invest only in the capital market, they would be obliged to choose a point along DH; if they could invest only in real as- sets, they would be obliged to choose a point along DL The miser can now spend more today and next period. . . . .. and so can the prodigal Dollars, period 0 7. Redraw Figure 2.5 to scale to represent the following situation: I A firm starts out with $10 million in cash. IThe rate of interest r is 10 per cent. I To maximise NPV the firm invests today $6 million in real assets (Co 6 million). This leaves $4 million that can be paid out to the shareholders. I The NPV of the investment is $2 million. When you have finished, answer the following questions: a. How much cash is the firm going to receive in year 1 from its investment? b. What is the marginal return from the firm's investment? What is the present value of the shareholders' investment after the firm has announced its investment plan? d. Suppose shareholders want to spend $6 million today. How can they do this? e. How much will they then have to spend next year? Show this on your drawing. Dollars, period 1 FIGURE 2-5 Both the prodigal and the miser have initial wealth of D. They are better off if they invest JD in real assets and then borrow or lend in the capital market. If they could invest only in the capital market, they would be obliged to choose a point along DH; if they could invest only in real as- sets, they would be obliged to choose a point along DL The miser can now spend more today and next period. . . . .. and so can the prodigal Dollars, period 0