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Question 1(25 pts) NPV Valuation: The CR Corporation wants to set up a private cemetery business. According to the CFO, business is looking up. As

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Question 1(25 pts) NPV Valuation: The CR Corporation wants to set up a private cemetery business. According to the CFO, business is "looking up". As a result, the cemetery project will provide a net cash inflow of $60,000 for the firm during the first year and the cash flows are projected to grow at a rate of 6% forever. The project requires an initial investment of $925,000. a). If CR Corp. requires a 13 percent return on such undertakings, should the cemetery business be started? b). The company is somewhat unsure about the assumption of 6% growth rate in its cash flows. At what constant growth rate would the company just break even, if it still required a 13 percent return on investment

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