NPV Valuation The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M$.$ Deep, business is $$looking up$.$ As a result, the cemetery project will provide a net cash inflow of $$180,000$ for the firm during the first year, and the cash flows are projected to grow at a rate of $4$ percent per year forever. The project requires an initial investment of $$2\mathrm{.}2$ million.

If the company requires a return of $11$ percent on such undertakings, should the cemetery business be started?

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The company is somewhat unsure about the assumption of a $4$ percent growth rate in its cash flows. At what constant growth rate would the company just break even if it still required a return of $11$ percent on its investment?