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11 pts B Question 26 (11 ports Batesville Casket Company is evaluating the opening of a new casket and vault production operation. The project will
11 pts B Question 26 (11 ports Batesville Casket Company is evaluating the opening of a new casket and vault production operation. The project will provide a net cash infow of $90.000 next year. Demand is very steady, therefore cash flows are projected to grow at a rate of 4% each year forever. The project requires an initial cash outflow of $1,500,000. The firm has a required return of 11%. 1. Should BCC begin construction of the new factory? 2. The firm has experienced difficulty estimating the growth rate, therefore what is the break-even growth rate that would provide an NPV of C? Est View Insert Format Tools Table 12 v Prazeh B IV A & Tv Dv BOB
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