The yurdone 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 $145,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 4 percent per year forever. the project requires an initial investment of $1,900,000.
a-1. what is the npv for the project if the company's required return is 11 percent? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)
a-2. if the company requires an 11 percent return on such undertakings, should the cemetery business be started? yes or no?
b. the company is somewhat unsure about the 4 percent growth rate assumption 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? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)