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 $$102,000$ for the firm during the first year, and the cash flows are projected to grow at a rate of $5$ percent per year forever. The project requires an initial investment of $$1,550,000.$

a$-1.$

What is the NPV for the project if the company's required return is $10$ percent? $($A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

a$-2.$

If the company requires a return of $10$ percent on such undertakings, should the cemetery business be started?

multiple choice

Yes

No

b$.$

The company is somewhat unsure about the assumption of a growth rate of $5$ percent in its cash flows. At what constant growth rate would the company just break even if it still required a return of $10$ percent on investment? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$