The Pools Corporation wants to start a new project: manufacture and sell fiberglass made pools for private residences. Financial analysts hired by the company are estimating a net after-tax cash inflow of $95,000 at the end of the project's first year. The analysts also believe that the after-tax cash flows will be growing at an annual rate of 4 percent, forever. The required initial investment for this project is $1,480,000.

a-1	Calculate the Net Present Value for the fiberglass pool project given a 11 percent required return. (Don't forget a minus sign if your answer is negative. Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)

a-2	If instead the required return is 11 percent, should the firm accept or reject the fiberglass pool project?
	multiple choice Reject Accept

b.

Now, what if the company wanted to accurately calculate the required growth rate for a profitable project? Let's say it's not happy with its currently assumed annual growth of 4 percent for the project's future cash flows. Calculate the annual growth rate at which the company would "break even" if the required return is 11 percent. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., type 32.16 if you got 32.16%.)

Please answer this question using excel somehow and show your work, the formulas, what you did to get the answer PLEASE