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 $180,000 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 $2.2 million. a. If the company requires a return of 11 percent on such undertakings, what is the NPV of the project? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.18. b. The company is somewhat unsure about the assumption of a 4 percent growth rate 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 its investment? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. a. NPV b. Growth rate %

The Yurdone Corporation wants to set up a private cemetery business. According to the CFQ. Bairy M. Deep, business is "looking up." As a result, the eemetery project will provide a net cash inflow of $180.000 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 miltion a. If the company requires a teluin of 11 percent on such undertakings, what is the NPV of the project? Note: Do not round intermediate calculations and enter your onswer in dollars, not millions of dollars, rounded to 2 docimal ploces, e.9. 1,234,567.18. b. The company is somewhat unsure about the assumption of a 4 percent growth rate 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 its invesiment? Note: Do not round intermediate calculations and enter your onswer as a percent rounded to 2 decimal places, e.9., 32.16