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?

A) NPV= - $428,888.89 B) Company would break Even if g = 5.68%

Explanation:

Hi, we have to bring to present value all the inflows and outflows of cash, this is the formula to use and the math of it.

The question says that "at what constant growth rate would the company just break even..." and well, a NPV=0 is not precisely break even, actually, it means that the company is obtaining exactly what is asking for any investment, but let´s assume that the question was, what should the growth rate be for the company to accept this project?. So we have to solve the first equation for "g", that is:

So the constant growth rate has to be at least 5.68% for the company to accept this project (NPV=0)

Best of luck

borrow money from the government then pay the government back 5k

the third answer is correct.