Question # $1$

A firm is seeking to manage the future growth of the company by termining the sustainable growth rate. Looking forward to future growth, the firm$$s new goal is to pay $8\%$ of net income as dividends, reaching a new marging of $6\%.$ Last year$$s information is as follows: Sales $$5,000,000,$ Inventory $$3,500,$ total assets $$4,500,000,$ total liabilities $$3,000,000.$ What is the firm sustainable growth rate rounded to the nearest percent?

Question # $2$

How will the value of a $$1,000,000$ capital budgeting investment be affected, assuming the inflation rate is $2\%?$