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

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The Yurdone Corporation wants to set up a private cemeterybusiness. According to the CFO, Barry M. Deep, business is "lookingup." As a result, the cemetery project will provide a net cashinflow of $94,000 for the firm during the first year, and the cashflows are projected to grow at a rate of 3 percent per yearforever. The project requires an initial investment of$1,470,000.
A)
What is the NPV for the project if the company's required returnis 12 percent?
B) Yes or No: If the company requires a return of 12 percent onsuch undertakings, should the cemetery business be started?
C) The company is somewhat unsure about the assumption of agrowth rate of 3 percent in its cash flows. At what constant growthrate would the company just break even if it still required areturn of 12 percent on investment?

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The Yurdone Corporation wants to set up a private cemeterybusiness. According to the CFO, Barry M. Deep, business is "lookingup." As a result, the cemetery project will provide a net cashinflow of $94,000 for the firm during the first year, and the cashflows are projected to grow at a rate of 3 percent per yearforever. The project requires an initial investment of$1,470,000.A)What is the NPV for the project if the company's required returnis 12 percent?B) Yes or No: If the company requires a return of 12 percent onsuch undertakings, should the cemetery business be started?C) The company is somewhat unsure about the assumption of agrowth rate of 3 percent in its cash flows. At what constant growthrate would the company just break even if it still required areturn of 12 percent on investment?