1.
There are two IRRs so you cannot use the IRR as a criterion for
accepting the opportunity
-119.4+19.2/r*(1-1/(1+r)^10)-1.9/r*1/(1+r)^10=0
=>r=-178.665%,3.26676%,7.53047%
2.
=-119.4+19.2/7.8%*(1-1/(1+7.8%)^10)-1.9/7.8%*1/(1+7.8%)^10
=-0.890106 million
3.
If the opportunity cost of capital is between r=3.27% and r=7.53%,
the investment should be undertaken
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