Problem 7 Intro Your company is considering building a factory for a new product. The factory costs $760,000 and will produce a cash inflow of $38,000 in the first year. The cash inflows are expected to grow by 6% every year forever. The required return for the project is 7%. LB - Attempt 1/10 for 10 pts. Part 1 What is the NPV of the project? Correct Using the formula for a growing perpetuity: CF NPV = CF + R - 38,000 = -760,000+ 0.07 - 0.06 = 3,040,000 Part 2 B Attempt 1/10 for 10 pts. What is the break-even growth rate, i.e., the growth rate that sets the NPV to zero? 4+ decimals Submit