The Yurgone 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 $205,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 3.5 percent per year forever. The project requires an initial investment of $2,800,000.

1. If Yurgone requires a 10.5 percent return on such undertakings, should the cemetery business be started?
2. The company is somewhat unsure about the assumption of a growth rate of 3.5 percent in its cash flows. At what constant growth rate would the company just break even if it still required a return of 10.5 percent on the investment?

Required:

Complete the assessment of the cemetery project for Yurdone Corporation on Excel.