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 $85,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 6 percent per year forever. The project requires an initial investment of $1,400,000.
(a) If Yurdone requires a 13 percent return on such undertakings, the NPV of the project is $________ and the cemetery business should not be started.
(b) The company is somewhat unsure about the assumption of a 6 percent growth rate in its cash flows. The company would just break even at a constant growth rate of ______ percent if it still required a 13 percent return on investment.
(Do not include the dollar sign ($). Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places. (e.g., 32.16))