The Civic Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up." As a result, the cemetery project will provide a net cash inflow of $107,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 3 percent per year forever. The project requires an initial investment of $1,600,000. (Need help with part b)

a-1	What is the NPV for the projectif Civic's's required return is 12 percent?(Negative amount should be indicated by a minus sign. Do not round intermediate calculations andround your answer to 2 decimal places, e.g., 32.16.)

NPV

$

a-2	If Civic requires a return of12 percent on such undertakings, should the firm accept or reject the project?
	Reject Accept

b.

The company is somewhat unsure about the assumption of a 3 percent growth rate in its cash flows. At what constant growth rate would the company just break even if it still required a return of12 percent on investment?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)