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year, and the cash flows are projected to grow at a rate of 4.5 per year forever. percent The project requires an initial investment of
year, and the cash flows are projected to grow at a rate of 4.5 per year forever. percent The project requires an initial investment of $4,100,000. a. If Yurdone requires a return of 11 percent on such undertakings should the cemetery business be b. The company is somewhat unsure about the assumption of a growth rate of 4.5 percent in its cash flows. At what constant growth rate would the company just break even if it still required a return of 11 percent on investment
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