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please show all the work, not in excel. thanks 12. The Yurdone Corporation wants to set up a private cemetery business. According to the CFO,
please show all the work, not in excel. thanks
12. 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 $102,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 5 percent per year forever. The project requires an initial investment of $1,550,000. a.) If Yurdone requires a return of 10% on such undertakings, should the firm accept or reject the project? (6 points) b.) The company is somewhat unsure about the assumption of a growth rate of 5% in its cash flows. At what constant growth rate would the company just break even if it still required a return of 10% on investment? (6 points) Step by Step Solution
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