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Q 7 ) The Aria Corporation wants to set up a business. According to the CFO, the business is looking up . As a

Q7) The Aria Corporation wants to set up a business. According to the CFO, the business is "looking up." As a result, the project will provide a net cash inflow of $55,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 5% per year forever. The project requires an initial investment of $650,000. The company is somewhat unsure about assuming a 5% growth rate in its cash flows. At what constant growth rate would the company break even if it still required an 11% return on investment? (15 points)
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