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 $$195,000$ for the firm during the first year, and the cash flows are

projected to grow at a rate of $4$ percent per year forever. The project requires an initial investment of $$2\mathrm{.}4$ million.

a$-1.$ What is the NPV for the project if the company's required return is $11$ percent?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

NPV

a$-2.$ If the company requires an $11$ percent return on such undertakings, should the cemetery business be started?

No

Yes

b$.$ The company is somewhat unsure about the $4$ percent growth rate assumption in its cash flows. At what constant growth rate would

the company just break even if it still required a return of $11$ percent on investment?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$