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aind peANSWER Answer in the seace provided. You must how all of your ns where applicable to receive credit. e prove work and provide explanations
aind peANSWER Answer in the seace provided. You must how all of your ns where applicable to receive credit. e prove work and provide explanations 11. You have the chance to that pr to pursue a project that produces the following incremental cash flows (in millices of dellars): CFi CF S16 25% and 400%. Ifyou r cost of capital is7 you your decision (if you cannot decide, explain why). 75%, would This accept the (20 points) project has two t mal rates freta 03L project? Explain how you came to 12. The Yurdone Corporation wants to set up a private cemetery business. According to the C ometery project wojected to grow O, Barry vide a net cash inflow rate of 5 M. Deep, basiness is "looking up'. As a result, the cemetery project will prov of $102,000 for the firn during the first year, and the cash flows are projected to grow at a percent per year forever. The project requires an initial investment of $1,550,000 a.) If Yurdone requires a return of 10 percent on such undertakings, should the firm accept or reject the project? (o points) b) The company is somewha t unsure about the assumption of a growth rate of 5 percent in its cash of 10 pereent o investin ent? "6 paiuthmpany just break even if it still required a return
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