World of Chocolate Inc. is considering expanding its chocolate business and starting selling a new line of dark chocolate gift boxes. World of Chocolate Inc. estimates that $$1,400,000$ would be needed for launching this multi$-$year investment project. World of Chocolate Inc.$\text{'}$s R&D team believes that the company can expect an inflow of $$87,900$ in income after taxes. The company's R&D team also estimates a $5\%$ annual growth of these after$-$tax income amounts indefinitely.

a$-1$

According to the NPV investment valuation technique, at a $10\%$ required return, the value of this new project of World of Chocolate Inc. equals $\_\_\_.($Type the minus sign if your NPV is negative. Do not round intermediate calculations and only round your final answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

a$-2$

The R&D team should recommend that World of Chocolate Inc. $\_\_\_\_\_\_\_$ this multi$-$year project $($given the same $10\%$ annual return used in the above calculations$).$

multiple choice

Accept

Reject

b$.$

One last question: The $5\%$ annual growth given above is the R&D team's best guess given the current market. However, the market may change in the future. Recalculate this growth rate $--$ at what rate would World of Chocolate Inc. be indifferent between launching or not launching this project? $($Again$,$ for any calculations $10\%$ should be used for your project's required rate of return.$)($Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,$ type $32\mathrm{.}16$ if you got $32\mathrm{.}16\%.)$