The Yurdone 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 $60,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 4.5 percent per year forever. The project requires an initial investment of $694,000.

Required:

a.

If Yurdone requires a 12.5 percent return on such undertakings, the NPV of the project is $ (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) and the cemetery business (Click to select) should should not be started.

b.

The company is somewhat unsure about the assumption of a 4.5 percent growth rate in its cash flows. The company would just break even at a constant growth rate of percent (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) if it still required a 12.5 percent return on investment.