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Chapter 9 Homework Question 12 (of 13 7.69 points The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Bary

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Chapter 9 Homework Question 12 (of 13 7.69 points The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Bary M Deep, business is "looking up. As a result, the cemetery project will provide a net cash inflow of $102,000 forever. The project requires an initial investment of $1,550,000 a-1 What is the NPV for the project it Yurdone's required return is 10 percent? (Negative amount year, and the cash fows are projected to grow at a rate of 5 peroent per year and round your final be indicated by a minus sign. Do not round intermediate calculations answer to 2 decimal places. (e-g-32.16)) a-2 H urdone requires a return of 10 percent on such undertakings, should the firm accept or reject the Accept Reject somewhat unsure about the assumption of a 5 percent growth rate in its cash flows. At if it still required a returm of 10 percent b. The company is what constant growth rate would the company just break even on investment? (Round your answer to 2 decimal places. (e.g. 32.16) Constant growth ra References eBook & Resources Oifficulity: Challenge Leaming Objective: 09-01 MacBook Air esc 0 F3 FS 2 4

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