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The Yurdone Corporation wants to set up a private cemetery business. According to th CFO, Barry M. Deep, business is looking up. As a result,

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The Yurdone Corporation wants to set up a private cemetery business. According to th CFO, Barry M. Deep, business is "looking up". As a result, the cemetery project wi provide a net cash inflow of $415,000 for the firm during the first year, and the cash flow are projected to grow at a rate of 3.8 percent per year forever. The project requires a initial investment of $4,700,000. 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., 32.16.) NPV o-2 If the company requires a return of 11 percent on such undertakings, should the firm accept or reject the project? Reject Accept 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 3.8 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., 32.16.)

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