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The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is...

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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 $43,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 5 percent per year forever. The project requires an initial investment of $741,000.;Required;a.;If Yurdone requires a 12 percent return on such undertakings, the NPV of the project is $ (Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16)) and the cemetery business (Click to select)should notshould be started.;b.;The company is somewhat unsure about the assumption of a 5 percent growth rate in its cash flows. The company would just break even at a constant growth rate of percent (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) if it still required a 12 percent return on investment. references

 

Paper#74800 | Written in 18-Jul-2015

Price : $27
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