Question 2 Pudge Enterprise hopes to start a private company on account of the business environment looking quite favourable. The project will provide a net cash inflow of $87,199 for the firm during the first year and the cash flow are projected to grow at a rate of 4.5 percent per year forever. The project requires an initial investment of $1,850,000. If Pudge requires a 11.5 percent return on such undertakings, should the business be started