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 $$100,000$ for the firm during the first year, and the cash flows are projected to grow at a rate of $4$ percent per year forever. The project requires an initial investment of $$1,530,000.$

a$-1$ What is the NPV for the project if the required return is $11$ percent? $($A negative amount should be indicated by a minus sign. 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 a return of $11$ percent on such undertakings, should the firm accept or reject the project?

Reject

Accept

b$.$ The company is somewhat unsure about the assumption of a growth rate of $4$ percent in its cash flows. At what constant growth rate would the company break even if it still required a return of $11$ percent on investment? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

Constant growth rate