_ "_I.' ___ _ Q25 'Ihe Yurdone Corporation wants to set up a private cemetery business. According to the CF13, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inow of $35,0 for the rm during the rst year, and the cash ows are projected to grow at a rate of a percent per year forever. The project requires an initial investment of S 1 ,4,. a. If Yurdone requires a 13 percent return on such undertakings, should the cemetery business be started? b. The company is somewhat unsure about the assumption of a 6 percent growth rate in its cash ows. At what constant growth rate would the company just break even if it still required a 13 percent return on investment