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The Argyll Corporation wants to set up a private cemetery business. According to the CFO, Kepler Wessels, business is looking up. As a result, the

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The Argyll Corporation wants to set up a private cemetery business. According to the CFO, Kepler Wessels, business is "looking up". As a result, the cemetery project will provide a net cash inflow of $97,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 4% per year forever. The project requires an initial investment of $1,500,000. a-1. What is the NPV for the project if Argyll required return is 11% ? (Negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) NPV $ a-2. If Argyll requires an 11% return on such undertakings, should the firm accept or reject the project? Accept Reject b. The company is somewhat unsure about the assumption of a 4% growth rate in its cash flows. At what constant growth rate would the company just break even if it still required an 11% return on investment? (Round the final answer to 2 decimal places.) Constant growth rate

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