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 $101,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 3 percent per year forever. the project requires an initial investment of $1,540,000.
(a) if yurdone requires a return of 13 percent on such undertakings, what is the npv of the project? (do not round intermediate calculations. round your answer to 2 decimal places (e. g., 32.
(b) should the cemetery business be started?
(c) the company is somewhat unsure about the assumption of a growth rate of 5.9 percent its cash flows. at what constant growth rate would the company just break even if it still required a return of 13 percent on its investment? (do not round intermediate calculations. enter your answer as a percentage rounded to 2 decimal places (e. g., 32.