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 $118,000 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 $1,410,000

a) If Yurdone requires a 15 percent return on such undertakings, the NPV of the project is $ how much?

b) The company is somewhat unsure about the assumption of a 6.1 percent growth rate in its cash flows. The company would just break even at a constant growth rate of ??? percent if it still required a 15 percent return on investment.