a.
Adequate information:
Net
Growth rate=3.8%
Initial investment=$4,700,000
Discount rate=11%
To determine: Whether the cemetery business should be started or not.
Introduction: NPV is a technique to evaluate different investment proposals and select the best one. It is basically the
b.
Adequate information:
Net cash inflow in the first year = $415,000
Initial investment=$4,700,000
Discount rate=11%
To determine: Growth rate at the break-even point.
Introduction: NPV is a technique to evaluate different investment proposals and select the best one. It is basically the net of the present value of aggregate cash inflows and aggregate cash outflows associated with a project.
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