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The Cloud Corporation wants to set up a private parking business. According to the CFO, business is looking up . As a result, the parking
The Cloud Corporation wants to set up a private parking business. According to the CFO, business is looking up As a result, the parking project will provide a net cash inflow of $ for the firm during the first year and the cash flows are projected to grow at a rate of after that, forever. The project requires an initial investment of $
a If Cloud Corp. requires a percent return on such undertakings, should the cemetery business be started?
b The company is somewhat unsure about the assumption of growth rate in its cash flows. At what constant growth rate would the company just break even, if it still required a percent return on investment?
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