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Business, 05.09.2019 20:20 winterblanco

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 $91,000 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 $1,440,000.
a. what is the npv for the project if yurdone's required return is 12 percent?
b. the company is somewhat unsure about the assumption of a 3 percent growth rate in its cash flows. at what constant growth rate would the company just break even if it still required a return of 12 percent on investment?

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The yurdone corporation wants to set up a private cemetery business. according to the cfo, barry m....
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