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The Dashing Dalvi Corporation wants to set up a private cemetery business. According to the CFO, Bright-Dalvi, business is looking up. As a result, the
The Dashing Dalvi Corporation wants to set up a private cemetery business. According to the CFO, Bright-Dalvi, business is looking up. As a result, the cemetery project will provide a net cash inflow of $50,000 to the Dalvi Corporation during the first year (D1), and the cash flows are projected to grow at a rate of 6 percent per year forever. Dashing Dalvi wants to buy the project for $780,000. If Dalvi requires a 12 percent return on such undertakings, should Dalvi enter the cemetary business
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