Deep Blue wants to set up a private cruise business. The project will provide a net cash inflow of $42,000 for the firm during the first year, and the cash inflows are projected to grow at a rate of 6.0 percent per year forever. The project requires an initial investment of $469,000. The firm requires a 13 percent return on such undertakings.

(a) what is the NPV of this project at the 13% required rate? Enter your answer to 2 decimal places.

(b) The company is somewhat unsure about the assumption of a 6.0 percent growth rate in its cash inflows. At what constant rate of growth would the company just break even, i.e. have a zero NPV? Enter the growth rate as a % and to 2 decimal places.