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0.80 points The Yurdone Corporation wants to set up a private cemetery business According to the CFO, Barry M.Deep, business is Tooking up.As a result,

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0.80 points The Yurdone Corporation wants to set up a private cemetery business According to the CFO, Barry M.Deep, business is Tooking up."As a result, the cemetery project will provide a net cash inflow of $115,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 5.8 peroent per year forever The project requires an iniial investment of $1,380,000 .mrtne re ures a-of 12 percent on s chundertakings atatshe NPV or the prepen Do not reund intermediate ealculations and round your answer to 2 decimal places, e.g. 32.16) b.The company is some nat unsure about the assumption of a growth rate of 5.8 percent n its cash flows Atwhat rstant growth rate wold the company just break even if it still required a return of 12 pencent on its investment? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places,eg32.16 Minimum growth rate References eBook & Resources Worksheet Learning Objective: 08-04 Evaluate proposed investments by using the net present value Difficulty: 3 ChallengeSection: &.1 Net Present Value 888 a 3

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